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Article: To infinity and beyond; Venture capital in China.
- Article from:
- The Economist (US)
- Article date:
- October 24, 2009
CopyrightCOPYRIGHT 2009 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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China is open to investments, of a particular sort
WESTERN private-equity firms trying to enter China run into two problems: getting their money in and getting their money out. The Chinese government keeps an asphyxiating foot on currency conversions. It is hostile to investments that involve restructuring (sacking people and selling assets) and financial engineering. And it has no interest in outsiders flipping assets for fast profits.
That makes the rare successes notched up by private-equity firms in China worthy of notice. On October 20th Infinity I-China, an Israeli-Chinese venture-capital fund, unveiled returns that show just how lucrative China ...