Archive | Finance RSS feed for this section

In China, Cash is (Still) King!

Over the past several months, stories that China is running short of cash have become prevalent. For example, a recent Wall Street Journal article featured Xie Daoliang and the financing issues faced by his company, a Chinese manufacturer of bulldozer treads for heavy machinery. A U.S. capital goods company looking to enter China asked for [...]

Read more

China Leads In Foreign Direct Investment

For the first time since 2003, China has surpassed the United States as the world’s largest recipient of global foreign direct investment (FDI). During the first six months of the year, FDI flows to China totaled $59 billion, a slight decline from $61 billion in the first half of 2011. Meanwhile, FDI flowing to the [...]

Read more

China’s SMEs Access The Bond Market

As financings go, the $7.8 million of three-year bonds that Tri-Tech Holding, Inc. (NASDAQ CM: TRIT) issued last month will not set any records for size. The significance of the financing, however, lies in the fact that it foreshadows a promising new source of capital for China’s small and medium-sized private companies. According to research [...]

Read more
Junk Bonds Come To China

Junk Bonds Come To China

During the decade of the 1970s in the United States, the Dow Jones Industrial Average (DJIA) was stuck at the 800 level, common stock offerings were few and far between, and companies with debt ratings lower than single “A” could not issue bonds. That meant that small and medium-sized enterprises (SMEs), the key job creators [...]

Read more
Capital Markets Experiment in Wenzhou

Capital Markets Experiment in Wenzhou

In China, reforms often come about from the ground up. Over the years, the country has shown an uncanny knack for taking what is otherwise an illegal activity according to its own laws and regulations, experimenting with it, legitimizing it, and then incorporating it into an overall reform program on a step by step basis. [...]

Read more
Wall Street, Goldman Sachs And China

Wall Street, Goldman Sachs And China

When I joined Paine Webber, fresh out of Harvard Business School in 1973 as a new investment-banking associate, Wall Street was a kinder, gentler place. Most firms — even the largest like Morgan Stanley, Goldman Sachs and Lehman Brothers — had less than $75 million of capital and would be considered boutiques in today’s world. [...]

Read more
A Convertible Redback

A Convertible Redback

One of our readers made a very thoughtful comment on our recent article regarding the internationalization of the yuan, which some now refer to as the “redback.” My reading of China’s monetary policy is that the country is more concerned about domestic inflation and the stability of the yuan than it is of the yuan’s appreciation [...]

Read more

Hope For The Sino-American Relationship

The hallways of the elementary school were filled with students, some as young as four years old, changing classes. Although they were busy going about the business of getting to their next class, each of the students greeted me with an enthusiastic “ni hao” as they passed by. If I had been in a school [...]

Read more
Cross Border M&A with China: Will It Really Happen?

Cross Border M&A with China: Will It Really Happen?

When I predicted at the end of 2010 that 2011 would be a banner year for cross-border mergers and acquisitions between China and the United States and China and Europe, I was not alone. Many investment bankers, lawyers and accountants have been gearing up for what everyone believes will ultimately be a big surge in [...]

Read more
Are China’s Property Prices in Freefall?

Are China’s Property Prices in Freefall?

In response to our recent post on the Chinese economy,  a reader asked the following: Jack, good summary. Do you have an opinion on the housing bubble? Gordon Chang last month said “Residential property prices are in freefall in China . . . .” Good question. There certainly has been a great deal of commentary [...]

Read more