cover image: Behaviour of Chinese SOEs : Behaviour of Chinese state-owned enterprises

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Behaviour of Chinese SOEs : Behaviour of Chinese state-owned enterprises

13 Feb 2012

The opinions expressed in this paper are those of the author and do not necessarily reflect the views of the Canadian International Council, its Senate or its Board of Directors, or the views of the Canadian Council of Chief Executives or its members. [...] Erica Downs refers to a specific SOE merger and acquisition (M&A) bank financing at 4.05% as “significantly cheaper” than the announced commercial lending rate of Chinese banks of 4.85%.27 Given the quality of the assets financed, the ability to sequester revenues, and the creditworthiness of the borrower the idea of unwarranted advantage seems difficult to sustain. [...] A further point is that the use of the balance sheet of the target firm is a common means of reducing the cost of an acquisition. [...] The Chairs of at least half of the SASAC-supervised national SOEs carry the rank of minister.38 They are powerful figures in government and business and are closely connected to both the party and private sector leadership elites. [...] The remainder of the executive suite is typically drawn from the senior executive ranks of the SOE itself on the basis of managerial and technical capabilities and is confirmed by SASAC.
health china government politics economics economy foreign direct investment supply chains canada bank loans business management competition corporate social responsibility fdi globalization investments government business enterprises securities transport bank board of directors m&a market and exchange entrepreneurial china national offshore oil corporation china national petroleum corporation investments, foreign cnooc canadian international council aluminum corporation of china limited chinalco

Authors

Cornish, Margaret

ISBN
9780986617553
Pages
29
Published in
Canada

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