GEODIS, a global leader in the transport and logistics sector, has been recognized as one of the 'Best Companies to Work for in Asia" by HR Asia for the Hong Kong region for the second consecutive year. The award recognizes organizations that have been identified by their employees as one of the best employers of choice. It acknowledges those with the best human resources (HR) practices, and which demonstrate high levels of employee engagement and excellent workplace cultures.

GEODIS was also presented with the HR Asia Diversity, Equity & Inclusion (DEI) Award, which celebrates the best companies in Asia that have successfully implemented practices and have become outstanding examples of promoting DEI.

"Congratulations to our team in Hong Kong for achieving these awards. Hong Kong is a critical hub and plays a pivotal role in GEODIS' plans for growth in the Asia Pacific region. At GEODIS, we firmly believe that our success is driven by our people, it is their passion, expertise and commitment that enable us to achieve our goals and exceed expectations. This recognition validates the efforts we have put into building a supportive, inclusive, and engaging workplace in the region," said Onno C.P. Boots, Regional President and CEO, Asia Pacific and Middle East region, at GEODIS.

"We are truly honored to be recognized as one of the Best Companies to Work for in Asia' and conferred the Diversity, Equity & Inclusion Awards. People are our most important asset and we continuously strive to provide them with the necessary tools, resources and opportunities for growth. We invest in robust learning and development programs, encourage open communication, and foster a collaborative, diverse and inclusive environment that encourage innovation. This award is the result of the collective efforts of our entire team and I want to extend my heartfelt gratitude for their exceptional contribution," said Chris Cahill, Managing Director, North Asia Sub-Region at GEODIS.

GEODIS' workforce excellence priorities are focused on managing performance, engaging the workforce and developing talents. These talent development initiatives include the Leadership Engagement Group, which empowers middle managers across the company to make a positive impact at work and Individual Development Plans, which aim to support employee goals and cultivate better work experiences for all. In addition, a global program, MANAGE, targeted at middle management, fosters a shared set of leadership skills aligned with established 7 leadership principles.

GEODIS believes that a culture of diversity, with an equal commitment to inclusivity, are key to achieving dynamism, creativity and fresh approaches to problem solving that are required in an ever-changing business environment. The company, which comprises of 51% women in Asia Pacific, regularly consults with its people through Employee Engagement Groups (EEGs) and the GEODIS' Women Network, to ensure diverse voices, concerns, and ideas are consistently heard and responded to.

In terms of practical initiatives employed to advance these policies, GEODIS emphasizes education of its staff about gender neutral policies, localized provision of family care and flexible working hours. The active GEODIS' Women Network facilitates both women and men to come together to learn about how diversity and inclusion create a better work environment and growth for all aspects of the business and organization.

The 10th Biennial International Association for Chinese Management Research (IACMR) Conference hosted by Hong Kong Baptist University (HKBU) is being held from 14 to 18 June on the University's campus.

IACMR is an academic organisation that serves scholars, students, managers and consultants who are interested in advancing their knowledge about organisational management in the Chinese context. The Association has over 14,000 registered members from almost 100 countries, and has been recognised as an authoritative, world-class academic research organisation in the area of Chinese management.

Themed "Globalisation in Flux: China and the World", this year's IACMR Conference gathers nearly 2,000 scholars and experts from around the world to share the latest research and exchange views on Chinese management and organisations under continuous change in globalisation.

The Conference's welcome reception was held on 14 June. Professor Zhang Zhixue, President of IACMR, and Professor Alexander Wai, President and Vice-Chancellor of HKBU delivered welcome remarks at the reception.

In his remarks, Professor Wai said that rapid technological developments have taken the world by storm, with the most recent example being the rise of generative AI tools like ChatGPT. Ongoing global challenges and geopolitical dynamics will continue to create uncertainties on the outlook of globalisation in future.

"As educators at HKBU, one of our key concerns in addressing the challenge of globalisation is to educate the next generation with an innovative and transdisciplinary approach, so that they will be equipped with the skills, knowledge and visionary mindset to help them seize the opportunities that technology brings," he said.

He said that the Conference offers an ideal platform to discuss higher education's models and practices in the fields of business and management.

One of the highlights of the Conference will be the Dean's Forum to be held tomorrow (17 June). Seven renowned scholars and heads of business schools from Arizona State University, Fudan University, The Education University of Hong Kong, Hong Kong Baptist University, Tsinghua University and The University of Hong Kong will discuss on the theme "The Future of Business Education".

Professor Ed Snape, Dean of the School of Business at HKBU, will discuss at the Forum how business schools should nurture students to meet employers' demands and develop stronger ties with the industries. Other issues to be explored at the Forum include the challenges of artificial intelligence (AI) and Chatbot posed to business education, the future of online and hybrid learning, and the development of business schools in the post-COVID era, etc.

The Conference also features almost 100 keynote panels, symposiums, paper presentations and roundtables on diversified topics for intellectual exchanges of scholars, research students, and practitioners in Asia and beyond. They will explore new concepts, theories and examine empirical findings in rigorous and creative ways. Scholars and research students from HKBU have also participated actively in the Conference, and used this opportunity to share with their counterparts their education and research excellence.

KGI Asia has released its 2023 Mid-Year Global Market Outlook, which covers mainland China, Hong Kong, Taiwan, the U.S., Singapore, and Indonesia.

In the 1H23, Global markets were traded at a range-bound. At the end of the first quarter, the market was first dragged by the banking crisis but managed to rebound as the market expected the end of a rate hike coupled with a better-than-expected economic outlook. However, the stock market remains highly volatile and undirectional, due to the disappointing China economic data.

Is it possible for the U.S. to have a soft landing? Is the high-interest rate going to trigger other crises? Are the policies implemented by the PRC government bringing any investment opportunities?

Under this backdrop, we would recommend the "LIKE" strategy for the rest of 2023:

L - Large-cap growth stocks offer better defensive quality

I - Capitalize on higher yields of Investment grade bonds

KE - Diversify across Key Eastern Countries

Kevin Tai, Head of International Wealth Management at KGI Asia, says: "The U.S. rate hike cycle may soon come to an end, economic performance is expected to be the next market focus. Based on the fact that market uncertainty remains, we would recommend keeping your portfolio diversified with allocation on both stocks and bonds. In terms of stocks, we suggest large-cap stocks that can potentially provide higher value to investors. For Fixed Income Investment, we prioritize investment-grade bonds. Here, KGI Asia proposes a strategy called "LIKE". "

Global Macro and the U.S.

The U.S. is in the late stage of economic expansion, evident in a low unemployment rate and high inflation. Despite tight monetary policy, we expect the country to avoid a recession in 2H23, due to a strong private sector balance sheet. With minimal reliance on residential investments and debt ratios for households and enterprises at the lowest levels in decades, the U.S. economy has been resilient to a high-interest rate in terms of consumption and investments, especially as 96% of nationwide mortgages are subject to fixed-interest rates.

The U.S. stock performance has been better than expected in 1H23, boosted by the country's economic resilience and stock rerating within the tech sector, driven by the launch of generative AI. We expect the U.S. stock market to be shored up by near-term positives, including the easing of the bank liquidity crisis, the tech sector rerating, and improving corporate earnings.

Easing recession concerns and the AI frenzy have helped maintain stock rallies year-to-date, but that doesn't mean that macroeconomic risks have abated. The recession may have been postponed, likely to 1H24, rather than avoided entirely. The U.S. economic resilience means the Fed will have no choice but to keep interest rates high, and tightening policy will eventually lead to deterioration of the labor market, which would hurt consumption and investment. High valuations, a tight monetary environment, and potential economic recession are detrimental to the stock market over the long run. Historically, new structural trends strong enough to propel large tech firms, such as the launch of generative AI, may have led to near-term buying frenzies within stock markets, but they have rarely altered the course of economic cycles or made markets immune to economic

downcycles. As such, investors should stay alert to short-term risks facing large tech firms following recent gains. We believe it would be prudent to gradually switch to defensive stocks during the market rally.

In terms of bond investments, we expect the Fed to pause rate hikes in June or July as inflation has declined from the peak and banks are already tightening lending standards. That said, we expect inflation to remain far above the Fed's target at the end of this year, and therefore maintain the rate at a high rate. Against such a backdrop, we suggest that investors consider accumulating Treasury bonds in the period between the pause of rate hikes and the start of rate cuts. Additionally, investors should expand their positions in medium- and long-term Treasury notes and investment-grade corporate bonds with higher ratings whenever the Fed issues tightening guidance. Finally, we advise investors to steer clear of high-yield and emerging-market bonds.

James Chu, Chairman at KGI Investment Advisory, says: "With subsiding recession fears, the U.S. stock market has managed to beat expectations so far this year. Near-term catalysts include an apparent end to the bank liquidity crisis, a tech re-rating on the back of generative AI, and improving corporate earnings. However, we caution that macroeconomic risks still linger and expect that a recession, though later than originally forecast, will occur in 1H24F. Also, current economic resilience means that the U.S. Fed will be compelled to maintain higher interest rates. At the end of the day, a tight monetary policy will put a burden on the job market and bear consequences for consumption and investment. We recommend a gradual shift to a defensive stance later this year."

Mainland China and Hong Kong

Market forecasts could be overly optimistic

The Chinese economy has shaken off last year's growth woes, recovery is in full swing, and 1Q's GDP growth rate has set a good start for the economy to return to normal for the whole year, by which GDP growth in 2023 could exceed the 5% target established at the Two Sessions. Nevertheless, for the time being, we are slightly conservative relative to the market's projection. This is because there is a contradiction in the economic indicators released by the Mainland in recent months, reflecting uneven recovery momentum. KGI Asia is projecting a possibility of economic growth in China reaching 5.5% or above for 2023, in which the most uncertain factor should be how fast consumer spending recovers."

Looking forward to further favorable policies

Now look at the messages from the Politburo meeting in April with a keen eye. The meeting mentioned that while some easing in the triple pressures (shrinking demand, supply shocks and weakening expectations) was noted, the Chinese economy remained challenged by inadequate internal dynamics, in the future, proactive fiscal policy must be strengthened to improve efficiency and prudent monetary policy must be precise and powerful to form a joint force to expand demand. We expect the People's Bank of China (PBOC) may lose monetary policies in the coming three months to stimulate the economy and maintain recovery.

China-U.S. relations are still a source of volatility

We expected the tension between China and the U.S. will continue to be the key focus of the market, as Cui Tiankai, former Chinese Ambassador to the U.S., remarked that the U.S. has come to regard China as its biggest strategic competitor, and that will definitely bring many unstable factors to China-U.S. relations. We will be monitoring relevant developments closely and will timely adjust the economic outlook and investment allocation.

HSI target at 22,100

In the outlook for Hong Kong stocks released at the end of last year, we predicted a target of 21,100 for the HSI in 2023 under the basic scenario. At that time, we estimated the earnings per share of HSI constituents for 2023 to be approximately HK$2,050, up 10.6% YoY. Up till now, companies that had announced quarter results reported a median profit growth of about 11%, meeting our forecast made at the year's start when the Mainland had not yet announced a full return to normal, whose positive impact, therefore, had not been thoroughly factored into the projected data. We now revise the FY23 HSI EPS to HK$2,085 with a growth of 12.5% YoY.

Meanwhile, we will now use a higher forward P/E at 10.6 by year-end, and we have revised the year-end HSI target to 22,100.

4 Major Investment Themes:

Dividend pay-out by central state-owned enterprises (SOEs) on a steady rise

The business of 'old economy' companies continue to improve

New economy stocks at the near-end of the rate hikes

Gold ETF as recession hedge

Kenny Wen, Head of Investment Strategy at KGI Asia, says: "As the market has significantly raised its growth forecast for China economy. Investors should continue to follow closely the future economic data and corporate earnings. We believe the central government will continue to implement policies to boost the economy, hence driving the Hong Kong stock market to perform well along with market volatility. In terms of strategy, investors should start with the fundamental factors and build up the portfolio with both aggressive and defensive allocations.

Taiwan

As a semiconductor and server production hub, Taiwan will continue to benefit from the current AI frenzy. Taiex's seasonality trends will be driven by the manufacturing sector, bolstered by new products and inventory restocking in 2H23, and a favorable base effect pushing up earnings growth. Significant 2H23 earnings growth for Apple concepts will be buoyed by the stocking of new products, while AI prospects underpin a positive view in 2024 for semiconductor and server assembly plants.

The high valuations of these AI beneficiaries can be explained by the tangible long-term structural trend. But we can still build positions when there are valuation adjustments. Taiex's AI beneficiaries include IC design services, chip foundry and manufacturing, cloud/data centers, and ABF and advanced packaging.

James Chu, Chairman at KGI Investment Advisory, says: "The AI-driven buying frenzy has successfully helped Taiex out of the tight consolidation of the past few months. Moreover, destocking and pull-in demand for new products are paving the way for restocking in the manufacturing industry in 2H23F. Coupled with a favorable base effect that should boost earnings growth, we foresee a run-up tied to seasonality trends. Given a clear secular trend emerging for AI, which has triggered a re-rating for related stocks, AI supply chain sector development should continue to be followed until the economy slips into a recession or AI benchmark stocks weaken markedly."

Singapore

With the U.S. and European banking crisis in March, ongoing tensions with China, as well as global recession concerns, Singapore is an ideal haven for Asian capital.

Chen Guangzhi, AVP, KGI Asia at KGI Asia Singapore, says: "Singapore's overall economy is healthy and robust as the growth in the construction and service sector offset the drop in the manufacturing sector. Inflation remains high, fuelled by the continuous capital and affluent people inflows. The authority has tightened policies to curb the strong demand for family offices and properties.

The banking sector is expected to have another record profit this year due to the increasing wealth management amidst lasting high-interest rates. The robust demand in the real estate market results in rising prices and more new projects.

Indonesia

The Indonesian economy is expected to grow in 2023, with the government targeting annual growth at 4.5%-5.3%, higher than the 20-year average of 3.5%, and reflects recovery from the contraction during the 2020 pandemic. We also expect loan growth to be at 9% in 2023, above the 15-year average of 8%, despite higher rates. To recap, the loan growth went negative in 2021 as businesses were adversely affected by the pandemic. With our positive view on commodity movement for 2023, Indonesia as a commodity exporter is expected to benefit from the robust commodity prices. We believe the trend will continue until 2024.

Yuganur Wijanarko, Senior Analyst at KGI Asia Indonesia, says: "We are optimistic about the Indonesian economy in 2H23 with the catalysts including loan growth to continue despite higher rates, higher commodity prices and better market sentiment awaiting the presidential election year in 2024."

Messe München is hosting the first multimodal logistics trade fair in Singapore, the transport logistic and air cargo Southeast Asia. Running from November 1 to 3, 2023, the event will be the most influential meeting place for logistics, mobility, IT, and supply chain management in Southeast Asia. Singapore, which took the top spot among the 179 countries in the World Bank's Logistics Performance Index (LPI), is leading the way, but the ASEAN countries as a whole are also gaining importance as strategic logistics hubs both now and in the future.

The LPI ranking gave Singapore the best scores in the quality of logistics services, competence and infrastructure categories. With its favorable geographical and geopolitical location on the Strait of Malacca, the city-state is home to one of the world's most important transshipment hubs with its port. Handling a good 37 million TEU, Shanghai was the only port that was more successful last year. The Tuas Port, which was opened last year, is currently creating 65 million TEU of additional capacity. The Asia-Pacific region is one of the most important markets for air freight, as well. Overall, ASEAN countries are catching up with China, the largest consumer market and production location. These countries are also considered reliable partners from a strategic geopolitical perspective.

"Singapore is the gateway to the greater Southeast Asia region and the most dynamic and exciting hotspot for transport and logistics right now. Many global companies are already active here, and many more want to come to reap the rewards of the attractive conditions. By offering transport logistic and air cargo Southeast Asia, we are creating a platform for shippers and transport and logistics service providers to develop and expand their business in the region. We are experiencing great interest in our new trade fair across all modes of transport," remarks Michael Wilton, Managing Director of MMI Asia, Messe München's regional subsidiary.

Messe München organizes leading global events for the transport, logistics, and air freight industries. transport logistic Southeast Asia is the latest in a series of flagship fairs that include India (Mumbai), China (Shanghai), Turkey (Istanbul), South Africa (Johannesburg), the U.S. (Miami), and the world's largest logistics event in Munich (Germany).

A full subsidiary of Messe München GmbH, MMI Asia established in Singapore in 1992, is now embarking on a significant growth and expansion program, bringing some of Messe München's world leading brands to the Southeast Asia market. transport logistic and air cargo Southeast Asian editions are organized by MMI Asia Pte Ltd.

The international industry network of transport logistic exhibitions consists of ten events. In addition to the leading international trade fair transport logistic in Munich, transport logistic China takes place every two years in China, and the transport logistic China Forum alternates with it every year, both in Shanghai. In Turkey, Messe München and EKO Fair Limited organize the logitrans International Transport Logistics Exhibition in Istanbul every year. Messe München is organizing transport logistic Americas, which will be held every two years in Florida starting in November 2022. From September 2023, transport logistic Southeast Asia will also be held in Singapore for the first time. At all trade fairs, the air cargo sector plays an essential role. As part of transport logistic in Munich, air cargo Europe is the world's largest air cargo trade fair, while air cargo China is the leading event in Asia. In addition, air cargo India and air cargo Africa are independent trade fairs. Also part of the transport logistic exhibitions is the cooperative transport logistic India @ CTL in Mumbai, India.

Messe München is one of the leading exhibition organizers worldwide with more than 50 of its own trade shows for capital goods, consumer goods and new technologies. Every year, a total of over 50,000 exhibitors and around three million visitors take part in more than 200 events at the exhibition center in Munich, at the ICM – Internationales Congress Center München, the Conference Center Nord and the MOC Veranstaltungscenter München as well as abroad. Together with its subsidiary companies, Messe München organizes trade shows in China, India, Brazil, South Africa and Turkey. With a network of associated companies in Europe, Asia, Africa, and South America, and with around 70 representatives abroad for more than 100 countries, Messe München has a truly global presence.