Back-to-back articles over the last several days in two Chinese dailies, Shenzhen Economic Daily (æ·±åœ³å•†æŠ¥)and Tianjin Ribao (å¤©æ´¥æ—¥æŠ¥). In both, Iâ€™m rather extensively quoted. You can read them here:
For those whose Chinese is wanting (as is mine, some of the time), the Shenzhen Economic Daily article discusses the difficulties Chinese companies have run into after getting listed in the US stock market. One possible solution is to â€œde-listâ€ these companies, by buying out all public shareholders, then applying for an IPO in China. Could it work? Perhaps, but my guess is that a Chinese company trying the Prodigal Son technique will likely meet with much skepticism from Chinese retail investors.
The article in the Tianjin Ribao is a general survey of developments in private equity in China. It discusses the shifting locus of PE investment towards inland China. This is a development I embrace. The vast majority of Chinaâ€™s vast population lives in places that have no outside equity capital, and no private companies on the stock market.
Over the last six months, I put in the time to prospect in regions that have thus far received little, to no, private equity. Iâ€™ve visited companies in Guizhou, Yunnan, Guangxi, Hunan, Sichuan, Qinghai, Henan, Liaoning, Xinjiang, Hebei, Shandong. Weâ€™ve taken on clients in quite a number of these. I hope to add more. The one constant in all these prospecting trips: there are outstanding entrepreneurs running outstanding businesses in every corner of this country.