The Fall of D'Long |
ICMR HOME | Case Studies Collection
»
Business Environment Case Studies Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
||||||||||
ExcerptsFinancing Business Expansion
The ProblemsIn 2001, Larry Lang, a professor at Chinese University of Hong Kong, wrote in an article that D'Long lacked a proper corporate governance structure and transparency and accused the company of manipulating stocks. He quoted the transactions between the listed and unlisted companies of D'Long and warned that in all probability, the company would soon be heading toward bankruptcy. Company officials promptly denied the allegations. In the financial year 2000-01, several scandals were reported in the stock markets in China. One such scandal involved Zhongke Chuangye, a venture capital firm, which raised US$ 650 million from the investors, and manipulated the share prices...
The AftermathAfter the debacle, media reports alleged that the Tang brothers had been able to build up their empire due to their close connections with government officials. According to Robert Kwauk, a partner at Blake Cassels & Graydon's Beijing, "The Tangs were well-connected with the old school government and the banking industry, so they had access to political clout and financing."In December 2005, Wang Xiaoshi, an official with China Security Regulatory Commission, was sentenced to 13 years in prison for taking bribes from D'Long... Exhibits
Exhibit I: A Note on Bank and Capital Market Financing in China
|
Case Studies Links:-
Case Studies,
Short Case Studies,
Simplified Case Studies.
Other Case Studies:-
Multimedia Case Studies,
Cases in Other Languages.
Business Reports Link:-
Business Reports.
Books:-
Textbooks,
Work Books,
Case Study Volumes.