Mergers & Acquisitions: Common Mistakes When Buying a State-Owned Enterprise or Other Chinese Company

by Dezan Shira & Associates, Investment Intelligence Unit, Greater China

It’s the Government so everything is OK. Actually this is not necessarily true, and in our experience, additional, not less, attention to detail needs to be put into effect when dealing with State Owned Enterprises (SOEs). Although the management of the enterprise may well stress “government connections”, thus implying some sort of favored status, the role of the government typically ceases at the level of shareholders. It does not really extend far into management, except for businesses of extreme national importance, such as in energy or in the manufacturing of certain key commodities and supplies

Read full article [PDF]

This article included in China Briefing Magazine

July / August 2006: Common Mistakes & Misperceptions When Investing In China - And How to Avoid Them

Other articles in this issue: Faulty or Inefficient China Business Applications by Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates CHINA HOLDING COMPANIES REGULATIONS UPDATED by Sabrina Zhang, North China Regional Partner, Dezan Shira & Associates NEW POLICY ON LEASE AGREEMENT REGISTRATION IN SHANGHAI by Lulu Zhang, Shanghai Regional Partner, Dezan Shira & Associates Shenzhen: Minimum Salary Increased by Alberto Vettoretti, South China Regional Partner, Dezan Shira & Associates