Theres a lot of fraud? Get over
As foreign investors in distressed companies try to get cash
out of China, lawyers predict offshore investors will return.
But before they do, they will demand innovative structures that
protect their money should an investment go bad.
Speaking at IFLR's Asia Restructuring and Insolvency Forum,
held in Hong Kong in June, in-house lawyers were optimistic
about a return of investment to China: "People on the trading
floor believe these investments will be back because people are
hungry for the yield," said Daniel Anderson of Citadel.
"Hopefully the current problems will help us improve structures
so enforcement is a little easier."
Foreign investment in China has slumped over the past year,
falling by 20.6% in the first quarter of 2009 (compared to the
previous year). As IFLR investigated in its May cover story,
the offshore structures...