FINS3630 Case Assignment 2014
FINS3630 HBS Case Assignment
S2, 2014
Dr Lixiong Guo
Case Materials:
HBS case “Shenzhen Development Bank”
Assignment:
Investing in any business entails an in-depth analysis of the performance and risk of the target before the investment. When investing in FIs, since FIs hold very different assets than industrial firms and are subject to strict regulations, investors have to pay attention to some special issues and risks that are specific to FIs.
In this assignment, you are required to write an analysis of a proposed investment in Shenzhen
Development Bank (SDB) by Newbridge in 2002 and evaluate whether the 1.6 times book value that
Newbridge agrees to pay for its 18% stake in SDB is appropriate. The objective of the analysis is to help Newbridge to make the right decision.
The materials you need for writing the report are all included in the case. The exhibits at the back of the case should be your main source of data. You do not need to get data from other sources for the analysis. Since most of you are not familiar with working on cases and are probably confused about what you should analyse and write in the report, I have decided to make your life a little easier by providing you with an outline of the important things that I expect you to address in your report on the next page.
However, you should not interpret these as the only questions you need to address. Rather, you should feel free to add additional analysis or discussions that you see fit with the objective of the report. A good report should show a student’s clear understanding of the relations between different parts of the analysis and the ability to integrate them into a coherent report that accomplishes the objective of the study. Simply answering each question on the list would not be enough to earn you a high mark for the task.
Report Format:
The report excluding the title page and figures and tables should not exceed 5 pages. The font size should be 11 point or
S2, 2014
Dr Lixiong Guo
Case Materials:
HBS case “Shenzhen Development Bank”
Assignment:
Investing in any business entails an in-depth analysis of the performance and risk of the target before the investment. When investing in FIs, since FIs hold very different assets than industrial firms and are subject to strict regulations, investors have to pay attention to some special issues and risks that are specific to FIs.
In this assignment, you are required to write an analysis of a proposed investment in Shenzhen
Development Bank (SDB) by Newbridge in 2002 and evaluate whether the 1.6 times book value that
Newbridge agrees to pay for its 18% stake in SDB is appropriate. The objective of the analysis is to help Newbridge to make the right decision.
The materials you need for writing the report are all included in the case. The exhibits at the back of the case should be your main source of data. You do not need to get data from other sources for the analysis. Since most of you are not familiar with working on cases and are probably confused about what you should analyse and write in the report, I have decided to make your life a little easier by providing you with an outline of the important things that I expect you to address in your report on the next page.
However, you should not interpret these as the only questions you need to address. Rather, you should feel free to add additional analysis or discussions that you see fit with the objective of the report. A good report should show a student’s clear understanding of the relations between different parts of the analysis and the ability to integrate them into a coherent report that accomplishes the objective of the study. Simply answering each question on the list would not be enough to earn you a high mark for the task.
Report Format:
The report excluding the title page and figures and tables should not exceed 5 pages. The font size should be 11 point or