Asian Investment Issues: Legal Enviroment
I attended a recent Investment in China and India Summit hosted by Financial Research Associates I will use this forum to share some of the slide/insights that were given at this summit for the benefit of those hoping/thinking/planning on investing in an Asian country – China, India or Japan.
The legal environment – property and shareholder rights under local law, the impartial application of the law, and the ability to repatriate profits – are an important consideration when investing in emerging markets.
China has taken a number of steps in the past year and a half that have confused investors on legal issues, and has unwittingly boosted offshore investor interest in India
—Taiwan also has restrictions in place about investing in China which have caused concerns for certain investors pursuing Greater China strategies
India has a legal system based on English law which is more understandable to offshore investors.
Both countries have foreign ownership restrictions which make control buyouts more difficult to execute
Source: Probitas
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