Foreign investors subject to new, higher hurdles.(CHINA)

Financial Executive, April, 2008 by Marshall, Jeffrey

Investing in China is getting more difficult, and more competitive, as Chinese regulators clamp down on vehicles for foreign investors and put new strictures on foreign-led mergers.

Those were among the key themes sounded in a winter forum on Chinese investment opportunities sponsored by law firm Paul, Hastings, Janofsky & Walker LLP. The New York City event drew hundreds of attorneys, investment bankers, private equity managers and others eager to hear the latest scoop on putting capital into China.

One problem is that the finely tuned U.S. buyout model isn't readily accepted in China, and a "longer lead time" is needed, said Steven Costabile, global head of the Private Equity Funds Group for AIG. Cultivation of high-level officials--known as guanxi,...

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