FT reports: Morgan Stanley has received Chinese government approval to sell its 34.3 per cent stake in China International Capital Corp, one of the country’s top investment banks, paving the way for the US group to set up a fresh venture in the country.
In a brief announcement on its website, China’s securities regulator said it had approved a transfer of more than 5 per cent of CICC shares. CICC officials confirmed that was a reference to Morgan Stanley’s stake in the company.
Four listed companies that hold stakes in Shanghai-based brokerage China Fortune Securities said the group would soon set up an investment bank joint venture with Morgan Stanley. That can only happen once it has divested the CICC stake.
Fortune will hold two-thirds of shares, the US investment bank will own the rest.
Morgan Stanley hopes the venture will provide more management control and more scope to underwrite and broker deals and to trade stocks and securities in China.
Sale of its CICC stake for about $1bn will produce a healthy profit on the initial investment of $37m Morgan Stanley made 15 years ago.
November 30, 2010
Private group joins China’s Europe push
FT reports: Fosun, China’s largest private conglomerate by sales, is planning a foray into Europe with a range of investments into luxury brands, small technology companies and the generic drugs sector.
Guo Guangchang, Fosun’s chairman and one of China’s richest men, told the Financial Times the group was in “deep discussions” with a number of possible targets in all three areas. “We do have several projects where we are very deep in the process ... Fosun will be one of the Chinese pioneers in investing in Europe,” Mr Guo said. He said Fosun could invest up to $2bn in any single deal, although initial investments would probably be limited to between €100m ($131m) and €200m each.
Fosun is part of a wave of large Chinese industrial companies that are eyeing the European market to tap into the continent’s technological expertise, its highly skilled labour base and as well as western brands to take to the Chinese market.
Guo Guangchang, Fosun’s chairman and one of China’s richest men, told the Financial Times the group was in “deep discussions” with a number of possible targets in all three areas. “We do have several projects where we are very deep in the process ... Fosun will be one of the Chinese pioneers in investing in Europe,” Mr Guo said. He said Fosun could invest up to $2bn in any single deal, although initial investments would probably be limited to between €100m ($131m) and €200m each.
Fosun is part of a wave of large Chinese industrial companies that are eyeing the European market to tap into the continent’s technological expertise, its highly skilled labour base and as well as western brands to take to the Chinese market.
China Cracks Down on Property-Rights Abuses
WSJ reports: The current campaign was begun amid mounting complaints from foreign and domestic companies in China about worsening piracy, despite repeated pledges to improve the situation.
Some intellectual-property experts say the government actually relaxed its copyright enforcement during the global economic downturn, beginning in 2008, to avoid taking any actions against Chinese companies that could hurt employment. A recent study by the U.S.-China Business Council found that intellectual-property theft was one of the top four concerns among the 100 U.S. businesses surveyed. The U.S. and European governments have put intellectual-property violations increasingly at the center of their trade demands with Beijing.
Some intellectual-property experts say the government actually relaxed its copyright enforcement during the global economic downturn, beginning in 2008, to avoid taking any actions against Chinese companies that could hurt employment. A recent study by the U.S.-China Business Council found that intellectual-property theft was one of the top four concerns among the 100 U.S. businesses surveyed. The U.S. and European governments have put intellectual-property violations increasingly at the center of their trade demands with Beijing.
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