China De-Brief Part II
By David Feldman at 3 June, 2010, 7:49 am
Now that the long Memorial Day weekend is behind us and I have had a few days to become somewhat unburied from being out of the office for my China trip, I have a few minutes to provide more information about my trip.
The highlight of the trip was DealFlow Media’s International PIPE Conference in Shanghai. The lovely Hyatt on the Bund was a great location for the event. This year’s program was different than in the past because it included not only panels of speakers but a number of company presentations as well. Our firm was pleased to be a sponsor of the event.
Our panel provided an introduction to reverse mergers for Chinese companies and dealmakers who may not have had much knowledge about the subject. We compared reverse mergers to IPOs, discussed the shell market and how it works, talked about what type of companies have the greatest chance for success in doing this, and the like. The simultaneous translation using headphones was very helpful!
Another very interesting panel talked about the growth in RMB denominated funds being established onshore in China for investment in the country. Investors are not just Chinese, however, they are from all over the world. As this development continues, more Chinese companies will be able to access growth capital or financing to handle costs of going public, all without the exchange hassles of foreign investment. The coolest part was the moderator – the Chairman of China’s famous Tsingtao beer. I was lucky enough to enjoy one with him the night before.
More to come!
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