True face of China -- A Modern Kaleidoscope Message Board

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Strategies & Market Trends : True face of China -- A Modern Kaleidoscope

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To: hui zhou who wrote (621)	11/16/2006 2:44:05 PM
From: RealMuLan	Read Replies (1) of 12464

The challenge Citigroup faces? That is an overstatement. For god sake, they only bought 20% of the stake. Yeah, they wanted the previous miracle replayed (I mean that private fund bought 18% of the stake but somehow ended up control the management), but they should understand that today's China is NOT China 5 or 10 years ago. Today's China has waken up, even if slowly, about their own national interest. The day that foreign companies could do just about anything has passed. BTW, have you read the latest earning report of Guangzhou Dev. Bank? Their business has turned around, profit has go up a lot, bad debt ratio has decline plenty. And that is exactly why Citi fought so hard for 85% of it for so long but I am glad they failed! It would be like free lunch if China were letting them bought 85% with that little money. The most valued asset for a bank is NOT its balance sheet, it is their customer base! That is exactly why the asset of China's state banks are so undervalued, and why foreign investors are so eager to get a piece of them! Foreign banks can only go after some people in cities. The vast majority of regular Chinese will NOT trust foreign banks, period!

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