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REVIEWING
INVESTMENT OPPORTUNITIES
| The Company attend
to the need of |
|
Chinese companies
to divest part of their assets or
activities
to identify foreign partners to help
fund and develop their activities
Foreign companies
to identify suitable partner
to identify profitable investments.
|
| Chinese companies |
|
As a result of the changing
environment, many Chinese companies are seeking solutions for their
unprofitable activities, to look for new tenants for their existing
premises or installations or simply to seek funding to face the increasing
competition.
Other entities have good ideas but lack capital and or management
& technical skills.
Both BFISC and the Company receive many suggestions
and requests to review their situation and ideas and to promote their
request for investment.
Unfortunately most projects are poorly, presented, lack the most elementary
data and are often unrealistic in their expectations.
The Company reviews the projects mostly in close cooperation with
BFISC as to comply with international standards. |
| Foreign companies |
|
Investors are mostly looking
to identify suitable local partners to implement their strategic plan
for the Chinese market or for export. In some cases the investors
want to do a thorough background check of their Chinese partners and
their proposals.
Real "investors" (such as venture capital investors) are slowly coming
to China to identify opportunities where profitable returns can be
expected.
The Company reviews the foreign inquiries and request for backgroundchecks
mostly in close cooperation with BFISC. |
| |
|
A
major difficulty in China is the lack of transparency and reliable
information.
The Company works closely with BFISC and its own network to have access
to the "right information". As a governmental organization, BFISC
has its official channels to make research off-limits to other private
or foreign entities. This particularly the case for land-use agreements,
documents related to "ownership" of buildings and related.
Both BFISC and the Company have a track record to set up innovative
ventures, in areas where cumbersome restrictions exists. |
Do you want to
make money in China? |
| Some of the (many)
critical issues related to investment projects |
Background check of partners reliability
standing in the business community
and government circles
business and technical skills
guanxi ("network")
Is the project "backed" by the Chinese
Authorities (local, central, relevant ministries) and if not,
can it be corrected.
Attitude of the local authorities
regarding foreign investment, foreigners and interference.
Local "illegal practices and hidden
costs".
Land-use agreement: how valid is
the claim of the partner, check with the relevant authorities
and their real power to enforce the agreement. To whom does the
land or buildings belong. Zoning and environmental issues (noise
level, dust, pollution, sewage, water, power)
Asset evaluation of the Chinese
contribution.
Can the project obtain the basic
approvals; if in a "gray area", what can be done. Need for local
and/or central approvals.
Marketing and Sales capabilities
of the Chinese party. Prospects for market positioning and regional
protectionism
Present staff with the Chinese partner
- potential problems with their experience, salaries, liabilities
(pension fund), attitude as well possibilities to hire & fire.
Risk factors
Verification of price levels, rates,
taxes ...
Potential returns.
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