89480700 Huaneng Power
MSc in Finance
Raising capital in Global markets
Romain Boujiot
Jen Huki
Jhon Hitterman
You have been hired as an international investment banker by a large U.S. institutional investor who is considering purchasing HPI stock. Provide an analysis of:
i) China as an investment destination ii) key success factors iii) HPI’s strengths and weaknesses.
World's largest country by population (nearly 1/5 of the world's population) Total Population (millions)
Growth rate
Source: EIU Country Report. September 9. 1994
1990
1,139
1.15%
1991
1,156
1.49%
1992
1,173
1.47%
1993
1,185
1.02%
Largest country of Asia, one of the largest of the word:
9 596 961 km2
One of the largest economies in the world: since 1978, the Chinese economy had expanded at an average rate of nearly 9%.
GNP at current market price (Rmb billion)
Real GNP growth
Source: EIU Country Report. September 9. 1994
1989
1,126
1989
1,599
4.4%
1990
1,77
4.1%
1991
2,024
8.2%
1992
2,404
13,00%
1993
3,138
13.4%
Since the late 1970s, China set up reforms to open its market.
In the late 1970s: the government relaxed its control over many industries to move
from a centrally planned economy to more of a market-oriented one.
In the 1980s: in order to facilitate modernization and encourage foreign investment and the import of advanced technology, China began establishing special zones for foreign investment: Special Economic Zones (SEZs) . The original four were Shenzhen,
Zhuhai, Shandou, and Xiamen.
In the 1990s:
◦ The government wanted to move toward a socialist market economy. Under the planned economic system, the state was determining production and pricing. In a market economy, the state creates a stable and competitive economic environment through the application of laws and regulations.
◦ The government allowed foreign investors to manufacture and sell a wide range of goods on the domestic market, eliminated time restrictions on the establishment of joint ventures, allowed
Raising capital in Global markets
Romain Boujiot
Jen Huki
Jhon Hitterman
You have been hired as an international investment banker by a large U.S. institutional investor who is considering purchasing HPI stock. Provide an analysis of:
i) China as an investment destination ii) key success factors iii) HPI’s strengths and weaknesses.
World's largest country by population (nearly 1/5 of the world's population) Total Population (millions)
Growth rate
Source: EIU Country Report. September 9. 1994
1990
1,139
1.15%
1991
1,156
1.49%
1992
1,173
1.47%
1993
1,185
1.02%
Largest country of Asia, one of the largest of the word:
9 596 961 km2
One of the largest economies in the world: since 1978, the Chinese economy had expanded at an average rate of nearly 9%.
GNP at current market price (Rmb billion)
Real GNP growth
Source: EIU Country Report. September 9. 1994
1989
1,126
1989
1,599
4.4%
1990
1,77
4.1%
1991
2,024
8.2%
1992
2,404
13,00%
1993
3,138
13.4%
Since the late 1970s, China set up reforms to open its market.
In the late 1970s: the government relaxed its control over many industries to move
from a centrally planned economy to more of a market-oriented one.
In the 1980s: in order to facilitate modernization and encourage foreign investment and the import of advanced technology, China began establishing special zones for foreign investment: Special Economic Zones (SEZs) . The original four were Shenzhen,
Zhuhai, Shandou, and Xiamen.
In the 1990s:
◦ The government wanted to move toward a socialist market economy. Under the planned economic system, the state was determining production and pricing. In a market economy, the state creates a stable and competitive economic environment through the application of laws and regulations.
◦ The government allowed foreign investors to manufacture and sell a wide range of goods on the domestic market, eliminated time restrictions on the establishment of joint ventures, allowed