2008: The Year of M & A for Mainland China

The following article is taken from Jack's Corner in earlier April 2008(for more details, please visit: www.gcsl.info)

The CPI is constantly increasing. The RMB is projected to accelerate its appreciation to RMB6 to USD1 by the end of 2008. The banking reserve ratio increased to its highest point of 15.5%. A stronger monetary policy has been announced. The export tax rebate incentive has been cut down dramatically...

Chinese Domestic Enterprises (“CDE”), especially the small and medium size CDEs, will certainly face a tough business environment in 2008. These CDEs will not only need to re-think their sales and market strategies, but they also will need to consider various other issues including, but not limited to, financing, forex, cost management, investment portfolios, etc. Given these issues, many CDEs are currently looking for foreign financing or co-operation to solve their difficulties.

Therefore, 2008 will be the year of Mergers and Acquisitions (“M&A”) and good opportunities for foreign investors to enter or expand in the China market.