Drew Bernstein, co-chairman of MBP, joined Cheddar to discuss what is behind China’s new spot as being the leading destination for foreign investments.
As China overtook the U.S. as the world’s top destination for new foreign direct investment last year, Chinese companies are sitting pretty right now. But, there is still a blind spot.
Chinese companies hit the mark in three key areas:
1) highly innovative
2) strong revenue growth
3) a sizable addressable market
Of the more than 600 unicorn companies worldwide, more than half of them come from China. Increasingly, Chinese companies are strong investor targets for SPACs, and IPO capital sources due to these key success factors.
However, Chinese companies need to improve upon their ability to demonstrate strong corporate governance. It is imperative that Chinese companies demonstrate credibility in financials and their management teams to earn and retain investor trust. No matter what happens in the regulatory environment, compliance will be mandatory and possible - but trust is still key to success to become and stay a public company.