How multinational companies (MNCs) finance their operations in China.

by Shum Sze Kei.Thesis (M.B.A.)--Chinese University of Hong Kong, 2000.Includes bibliographical references (leaves 43-46).ABSTRACT --- p.iiTABLE OF CONTENTS --- p.iiiLIST OF TABLES --- p.vCHART --- p.viChapterChapter I. --- INTRODUCTION --- p.1Objectives Of The Study --- p.2Methodology Of The Study --- p.2Chapter II. --- MNCs IN CHINA --- p.4Leading MNCs In China --- p.4MNCs' Investments In China --- p.5Different Entry Modes & Impact Upon Financing --- p.6The Trend Of Entry Mode To China --- p.6Joint Venture --- p.7Wholly Foreign Owned Enterprise --- p.8Joint-stock Company --- p.8Holding Company --- p.9Group Finance Company --- p.10Chapter III. --- FINANCING NEEDS OF MNCs IN CHINA --- p.11General Financing Environment In China --- p.11Financing Concerns Of MNCs In China --- p.12Political Risk --- p.12Exchange Rate Risk --- p.13Foreign Exchange Control --- p.13General Financing Criteria Of MNCs In China --- p.14Maximizing Debt And Minimizing Equity --- p.14Maturity Matching --- p.14Currency Matching --- p.15Financing Needs Of MNCs In China --- p.15Short-term Domestic Currency Financing --- p.15Long-term Domestic Currency Financing --- p.16Short-term Foreign Currency Financing --- p.16Long-term Foreign Currency Financing --- p.16Hedging Instruments --- p.16Chapter IV. --- HOW MNCs IN CHINA CURRENTLY FINANCE THEIR OPERATIONS? --- p.18Availability Of Financing --- p.18Domestic Banks --- p.19Foreign Banks --- p.19Foreign Currency Financing --- p.20Trade Financing --- p.20Working Capital Financing --- p.21Long-term Financing --- p.22Syndicated Financing --- p.22Domestic Currency Financing --- p.22Working Capital Financing --- p.23Long-term Financing --- p.24Syndicated Financing --- p.24Hedging Instruments --- p.25Case Study - --- p.25Background Information --- p.25Financing Requirements --- p.26How The Company Currently Finance Their Operations? --- p.27A Few Observations From The Case Study --- p.27Chapter V. --- RESTRAINTS OF THE FINANCIAL MARKETS IN MEETING MNCs NEEDS --- p.29Lack Of Support From Domestic Banks --- p.29Lack Of RMB Financing From Foreign Banks --- p.30Lack Of Long Term Financing --- p.31Lack Of Access To Equity Financing --- p.31Lack Of Bond Market --- p.32Lack Of Hedging Instruments --- p.33Chapter VI. --- ANTICIPATED FUTURE CHANGES OF THE FINANCIAL MARKETS IN MEETING MNCs NEEDS --- p.34Impacts Of WTO --- p.34Impact On Banking Sector --- p.34Impact On Equity Markets --- p.35Impacts Of Banking Reform --- p.35Impact On Domestic Banks --- p.35Impact On Equity And Bond Markets --- p.37Chapter VII. --- RECOMMENDATIONS TO MNCs IN CHINA AS REGARDS FINANCING --- p.39Explore Other Entry Modes When Setting Up Operations In China --- p.39Centralize Finance Activities For Efficient Management --- p.39Cultivate Relationship With Domestic Bank --- p.40Maintain Good Relationship With Foreign Banks --- p.41Improve Financial Accounting And Reporting Of China's Operations --- p.41BIBLIOGRAPHY --- p.4