Avoiding Problems: How to Select Quality China Based Companies Listed on the U.S. Stock Exchanges

January 14, 2011

As a well recognized market  leader in China and on Wall Street in the China related middle market advisory space, our firm New York Global Group has been advising China based corporate clients with their strategic growth in the last 17 years. The foundation of our business success lies in our ability to truly understand China and China related transactions in the same cultural environment as Chinese CEOs do.

Despite a large deal flow, less than 2% of all China based companies reviewed by NYGG have passed the firm’s rigorous client acceptance process. NYGG’s local presence in China provides the firm with the latest intelligence on Chinese companies on an ongoing basis.

The fundamentals of a business and more importantly, the integrity of a management team determine its stock performance over the long run. Can lawyers and accountants give investors assessment on the integrity of a company’s management team? The answer is No. That’s part of what NYGG does –  we bring to our clients the “human due diligence” in addition to extensive accounting and legal reviews  on projects which we support.

Cultural Understanding is Critical to Successful Investing:

NYGG staff meets with several hundred Chinese companies each year across many sectors. Through these meetings, we often gain insightful knowledge in many industries by speaking directly to Chinese CEOs and other leaders. We speak to them in the same Chinese language and we truly understand them since we share the same Chinese culture. Therefore, we believe New York Global Group (NYGG) has the ability to read into the “minds and hearts” of a Chinese CEO and conduct “human” due diligence – far more real and extensive than any desktop accounting or  legal reviews. It is  all about getting to know the people involved. Read the rest of this entry »