Chinas investment in Blackstone

College
Essay
Miscellaneous
Pages 5 (1255 words)
Download 0
China's investment in Blackstone shows us the concept of foreign direct investment along with global political economy. The idea of such investments is not new to the market; in fact, this concept is growing rapidly with no stops. Companies or countries place large pools of funds/ money in private-equity funds whereby allowing them to utilize it without seeking the whereabouts…

Introduction

Governments use this method to secure the domestic market for liquidation. This implies that these assets are of highly liquidated nature and can be altered easily.
The oil-producing countries have also come within its grip and are losing or rather investing their wealth in such funds. A company adopted a similar approach in the oil commodity. They then invested their wealth in holding bonds, bank deposits in a similar pattern like central banks.
The alarming fact is that no company discloses the application of the funds except for the ones in Norway that provide regular data and statistics. It may be possible that these mysteriously applied investments will be very well lost in the future with no accountability.
It happened in one of a developing country wherein a mushroom growth took place in the early eighties. These investment companies conned the unsuspecting public and lured them by promising huge percentage on their investments. The Government kept silent and this approach encouraged the high profit paying companies to get bolder and bolder till the public was convinced to accept them as legitimate companies. The problem further compounded due to no action by the State Bank. The margin of profits increased as the public committed their funds by selling their immovable assets.
All cate ...
Download paper
Not exactly what you need?

Related papers

SMEs in Chinas Textile and Clothing Industry
Such situation is result from three reasons. Firstly, after China's entry of WTO, the firms in this industry are facing fierce competition from entry of foreign textile and clothing giant firms in domestic market. Secondly, the restriction from Europe and U.S. which are the main destination where Chinese clothing firms export has been published on June, 2005 (www.china.com. 2005). Finally, the…
Finance Investment
Finance is important, because a business needs to forecast where the business is heading. It needs to know if it is making any profitability, what is to be achieved, what are the costs, the risks, and how to acquire the financial needs. Similarly investment is also important to us, because a dollar today may not be worth a dollar in future. Some of the reasons given below have prompted me to…
Chinas investment in Blackstone
Governments use this method to secure the domestic market for liquidation. This implies that these assets are of highly liquidated nature and can be altered easily.…
Derivative Investment
The other option available is to default the payment on the mortgage. It may be noted that both of these options are available with the borrower. In this context this paper presents a report on the features of the mortgage in general and an analytical study of the implicit options contained in them through an illustration.…
Investment Decision
On the other hand, stock price appreciates almost exclusively through good financial results.…
Investment Appraisal
The capital budgeting decisions are pertaining to investment decisions which will create assets which will in turn create products/ services which create the profits. Generally, current assets are not earning assets but they act as a buffer for the smooth operations of the business. But the long-term investment decisions includes the mission and visions of the company and hence is of strategic…
Corporate Investment
Some of the junk bonds are very profitable but they have the highest risk for investment losses. Individuals and corporations must carry out appropriate risk management when purchasing bonds.…