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24-01-2017, 12:43 PM
(This post was last modified: 17-03-2017, 08:00 PM by cyclone.
Edit Reason: Added writer and date
)
Is this a risk or an opportunity for investors ?
China Inc.’s Rising Shareholder Fights Latest Risk for Investors
by Lianting Tu , Lisa Pham , and David Yong
January 24, 2017, 12:00 AM GMT+8
Investors in Chinese companies now have one more risk to calculate: shareholder battles.
The mood in China’s corporate boardrooms is turning more hostile as a slowing economy has prompted more consolidation in many industries. The more challenging environment has also raised questions about whether companies are being efficiently run, with some shareholders disagreeing on strategy. The friction is adding further difficulties for foreign investors already wrestling with a lack of transparency and other corporate governance issues with Chinese companies.
Yingde Gases Group Co., the nation’s biggest industrial gas producer and an acquisition target, became the latest firm to be involved in a struggle for control as two founders stripped of executive power challenged a share placement plan. Its notes dropped to as low as 78 cents on the dollar in December. China Vanke Co. saw $10 billion of market value erased at the end of 2016 amid a takeover fight for the homebuilder. China Shanshui Cement Group Ltd defaulted on several bonds in the past 14 months after a boardroom fray stymied financing.
More details in https://www.bloomberg.com/news/articles/...-investors
China Inc.’s Rising Shareholder Fights Latest Risk for Investors
by Lianting Tu , Lisa Pham , and David Yong
January 24, 2017, 12:00 AM GMT+8
Investors in Chinese companies now have one more risk to calculate: shareholder battles.
The mood in China’s corporate boardrooms is turning more hostile as a slowing economy has prompted more consolidation in many industries. The more challenging environment has also raised questions about whether companies are being efficiently run, with some shareholders disagreeing on strategy. The friction is adding further difficulties for foreign investors already wrestling with a lack of transparency and other corporate governance issues with Chinese companies.
Yingde Gases Group Co., the nation’s biggest industrial gas producer and an acquisition target, became the latest firm to be involved in a struggle for control as two founders stripped of executive power challenged a share placement plan. Its notes dropped to as low as 78 cents on the dollar in December. China Vanke Co. saw $10 billion of market value erased at the end of 2016 amid a takeover fight for the homebuilder. China Shanshui Cement Group Ltd defaulted on several bonds in the past 14 months after a boardroom fray stymied financing.
More details in https://www.bloomberg.com/news/articles/...-investors
Specuvestor: Asset - Business - Structure.