Hogan Lovells’ Steve Robinson and Kurt Tiam explain the new rules for employee share plans in China

The granting of employee stock options and shares as a form of remuneration is an increasing trend in the People’s Republic of China (PRC). This comes as no surprise, considering retention of talented employees is critical for any corporation to expand in the Chinese market – a market most companies can ill afford to ignore. With the influx and expansion of foreign multinational corporations, the demand for high-level management employees, in particular, is greater than ever.