In today’s podcast, guest Anthony Siu discusses Chinese cross-border M&A, what challenges Chinese companies face when doing deals overseas and what they need to do to improve:
- Chinese outbound M&A will continue to grow at a high single digit to low double digit rate annually
- Cross-border deals will tilt more toward outbound transactions with industries diversifying from natural resources to industrials, consumers and technologies
- Physical distances, language barriers and valuation perspectives put Chinese companies at a disadvantage
- Advising Chinese companies involves more hand-holding and helping Chinese companies learn the deal-making process along the way
- Chinese buyers are not necessarily at a disadvantage as sellers’ key focuses are to get the deal done with good valuations
“It’s very typical for deals to be done with a handshake here in China. But…extra due diligence is required if you want to make sure that the acquisition will end up to be a successful one.” -Anthony Siu
Our Guest Today: Anthony Siu is managing director at Robert W. Baird & Co. Based in Shanghai, he is the head of Asia investment banking at the firm. Prior to Baird, Siu was a director of corporate advisory at Standard Chartered Bank, responsible for cross-border M&A transactions in China.
In today’s podcast, guest David Gosset discusses China’s potential help to the Eurozone and the long-term relationship between China and the European Union:
- China probably prefers to offer potential assistance to the Eurozone through the IMF
- There is no explicit trade-off for China’s financial assistance to Europe
- Eurozone debt crisis will push further the process of integration of EU nations
- The coming China-EU Summit will be a symbol to a more indispensable relationship between China and the EU
- In the longer term, Chinese companies’ investment in Europe will be key for the Continent to propel growth
“The European integration process has been a series of answers to a series of crises. The Euro debt crisis is another important series of crises, probably the third biggest crisis that Europe has faced since WWII. The result of that is going to be more European integration and more transfer of sovereignty.” – David Gosset
Our Guest Today: David Gosset is the director of the Euro-China Center for International and Business Relations at China Europe International Business School in Shanghai and Beijing. He is also the Founder of the Euro-China Forum with the objective of nurturing mutual understanding between the two edges of the Eurasian continent.
In today’s podcast, guest Jack Perkowski, a.k.a. Mr. China, discusses his views on China’s economy in the Year of the Dragon, where he sees great investment opportunities and key challenges facing China for the long term.
- Chinese government has great monetary and fiscal resources to achieve a soft-landing
- Property market and its potential downturn is not a threat to China’s overall economy
- Chinese stock market may swing upward along with loosening monetary policy
- In five years and beyond, the Renminbi will become fully convertible
- Great investment opportunities exist in energy efficiency and environmental technologies, health care and the financial services
“China needs to grow at somewhere between 7 to 9 percent (annually) to have an economy to absorb all of the new workers every year…so we are quite optimistic that china will continue on that growth path.” – Jack Perkowski
Our Guest Today Jack Perkowski is the founder and managing partner at China-focused merchant bank JFP Holdings. Acclaimed as Mr. China, Mr. Perkowski came to China in the early 1990s and founded ASIMCO, one of the largest auto components companies in China. That journey is captured in his book: Managing the Dragon: How I’m Building a Billion Dollar Business in China.
In this podcast, we review the news on:
- China’s economy is projected to grow at 8.4 percent this year by the World Bank
- China and the United Arab Emirates signed a currency swap deal to expand the usage of the RMB
- Average new home prices declined in December for the third consecutive month, but prices rose for the whole year in 2011
- China approved 14 institutions as Qualified Foreign Institutional Investors, expanding the scope of the QFII program
Anthony Siu is managing director at Robert W. Baird & Co. Based in Shanghai, he is the head of Asia investment banking at the firm. Prior to Baird, Siu was a director of corporate advisory at Standard Chartered Bank, responsible for cross-border M&A transactions in China.
David Gosset is the director of the Euro-China Center for International and Business Relations at China Europe International Business School in Shanghai and Beijing. He is also the Founder of the Euro-China Forum with the objective of nurturing mutual understanding between the two edges of the Eurasian continent.
Jack Perkowski is the founder and managing partner at China-focused merchant bank JFP Holdings. Acclaimed as Mr. China, Mr. Perkowski came to China in the early 1990s and founded ASIMCO, one of the largest auto components companies in China. That journey is captured in his book: 