Ruling puts foreign infrastructure investors at risk; guarantee on returns may prove worthless as Beijing clamps down on the quasilegal practice

Article Abstract:

China's policy on guaranteed returns on investments has created misgivings among its foreign investors as well as local companies incorporates in Hong Kong. Foreign investors previously borrowed based on the government's promise to make minimum return on investments, registering their investments as equity. With a government announcement banning such deals, investors are left with uncertainties about their guarantees. Some investors are even planning to back out of agreements involving such guarantees.

China, Foreign Investment Regulations, Foreign investments, Laws, regulations and rules, Return on investment, Foreign investment laws, Loans, Rate of return, Government guaranteed loans

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O'Leary won't press China to ease rules for foreign investors in power projects

Article Abstract:

Energy Sec. Hazel O'Leary cautioned US energy industry executives against over-optimism regarding her forthcoming trip to China, saying that short-term gains should not be expected. O'Leary stressed that her China trip aims to facilitate current power equipment contracts and to promote long-term energy-related business links with China, not to pressure Chinese authorities into eliminating present restrictions on foreign investment.

PETROLEUM AND COAL PRODUCTS, Bilateral Trade Negotiations, United States, Officials and employees, Foreign operations, International relations, Chinese foreign relations, United States foreign relations, United States. Department of Energy, Trade negotiations, O'Leary, Hazel R.

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Crackdown spurs Citic move: assets sale in China tied to rule limiting profit

Article Abstract:

Hong Kong-based Citic Pacific Ltd reported net profits of HK$7.42 billion for 1998, down by 62% from 1997 while revenues dropped by 19% to HK$13.69 billion. The company also disclosed its sale of water-treatment plants worth over $150 million and a toll road to its joint venture partners in China in compliance with Beijing's rules that ban local governments from guaranteeing profits to foreign investors on public works projects.

Construction, Sales, profits & dividends, Open-End Investment Funds, Investment Funds & Trusts, Management, Construction industry, Finance, Investment companies, Citic Pacific Ltd.

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