Click here for printer friendly page
Focus Point: Asia11/01/2005. Source: Ernst & Young.
 China’s economy has been growing by around seven percent a year for a decade. One thing is certain, says Ernst & Young: such expansion creates many capital hungry companies – and a few issues executives must address and investors must look out for.
Chinese growth is stoking the entire Asian economy and driving the
current global IPO market. In 2003, Asia accounted for 67% of
global IPO volume and 52% of total capital raised. China was
responsible for the tiger’s share of these transactions, accounting for
nearly half of all capital raised worldwide.
“There is a tremendous need for capital in Asia, particularly in
China. In the 1990s, there was a big increase in debt deals. Today,
we are seeing a rise in both debt and equity deals,” said
Alexander H. Mackintosh, Ernst & Young’s International Director
of Capital Markets in Asia.
The move to equity typically follows debt-raising. The latter is
cheaper, swifter and less onerous. Chinese companies wanting to
raise money on the global capital markets, often first raise money by
selling bonds to private investors in Europe or America.
markets and low interest rates in the affluent West, investors have
speculated on China driving prices upwards.
Click here to view the full report (pdf 935kb) You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html
Ernst & Young, one of the world's leading professional services organisations, helps companies across the globe to identify and capitalise on business opportunities. For more information, please visit www.ey.com
|
