Feb
23
2018
There’s little transparency in large Chinese conglomerates. They’re often layers of companies with unclear ownership and difficult to verify financials. Their leadership is often politically well-connected.
At the same time regulation of these entities is unclear as well. When the Chinese government decides to take an interest in the operation and systemic risks posed by these companies which rapidly expand through acquisitions both domestically and around the world, it’s not always clear whether it’s because of regulatory violations (or explicit as to which ones) or a signal of internal power struggles inside the government — whose faction is in and whose is out?
