Four government agencies including the Ministry of Industry and Information Technology have recently jointly issued the Guiding Opinions on Accelerating the Building of China's Self-owned Watch Brands (the "Opinions").
The Opinions put on the agenda: by the year 2020, the change of the ratio of high-end to mid-range to low-end market sales of China's self-owned watch products from the present 1:14:85 to 3:22:75; and the establishment of five or so internationally-renowned brands and 20 or so domestically-renowned brands, as well as two or three large watch manufacturers which boast advance technologies, distinct features, highly recognizable brands, and a steady profit growth. The Opinions encourage financial institutions to increase their credit support for such activities of watch manufacturers as technology reforms, M&A and overseas investments, and step up their innovation of the relevant financial products and services. The Opinions also encourage and support watch manufacturers which have met the relevant conditions to go public, issue bonds or utilize the capital market to obtain direct financing. In addition, the Opinions lay down requirements such as guiding the establishment of an intellectual property right alliance in the watch industry, supporting the establishment of an industry-wide patent pool and strengthening companies' ability to protect their intellectual property rights.