Some investors quit China, citing poor profits and fraud

Article Abstract:

Equity investors with stakes in Chinese firms are rethinking their strategy after a number have pulled out of China. The firms which pulled out include Newbridge Capital Ltd, Citigroup Inc and Crosby Asset Management. The firms cited poor profits, widespread fraud and control issues as reasons for their pull out. The firms which have opted to remain have sold their shares in different businesses and have focused on information technology and telecommunications. One of the firms, Goldman Sachs and Co has divested itself of shares in a diesel engine manufacturer and an ice cream maker.

Foreign operations, Citigroup Inc., Newbridge Capital Ltd., Crosby Asset Management Ltd.

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Japanese bankers break their silence about China's woes

Article Abstract:

The filing for bankruptcy of the Guangdong International Trust and Investment Co of China in Jan 1999 resulted in complaints from 10 Japanese banking institutions. The protests, filed in Feb 1999, was followed by a lawsuit by Bank of Tokyo-Mitsubishi against Guangdong Investment Ltd in Mar 1999. Japanese banks said they are considering filing charges against Hong Kong-based international accounting firms for misrepresenting the real financial health of these mainland companies.

Commercial Banks, Commercial Banking, Public affairs, Hong Kong, Banking industry, Japan, Cases, Finance, Financial institutions, Guangdong International Trust and Investment Corp.

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Private-equity channel dries up in Asia

Article Abstract:

Private equity is floundering in Asia and is not expected to make an upturn in the near future, due to its lack of integration with the region's capital structure. Asian companies could sell out to strategic investors, but most strategic investors are not currently interested in taking on new ventures.

Asia, Financial analysis

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