MNCs in the News*

February 2nd, 2014
Industrial and Commercial Bank of China (ICBC), the world’s largest bank in terms of assets and market capitalization, recently became the first state-owned Chinese lender to establish significant trading operations in London by investing US$ 765million to buy a majority stake in South Africa’s Standard Bank global market business. This marks a departure as most other Chinese banks in the UK such as Bank of China focus on corporate and retail banking.
February 2nd, 2014
A US Securities and Exchange Commission (SEC) administrative trial judge has barred four American Chinese accounting joint ventures from practicing in the US for 6 months for violating the Sarbanes-Oxley Act. The judge ruled the firms had violated the act by failing to turn over audit working papers requested by the SEC in several fraud investigations. The four firms all said they would appeal, arguing Chinese law does not allow them to release the papers.
February 2nd, 2014
The President of Toray Industries, Inc. (Japan), Sadayuki Sakakibara, will become the next Chairman of Nippon-Keidanren, Japan’s Business Federation. Keidanren is the largest interest group in the financial, economic community in Japan. Since Toray Industries has actively invested in Korea in the past, has promised to invest $287 million by 2018, and has strong ties with Korea, Sakakibara’s new role may have a positive influence on the troubled Japan-Korea relationship.
February 2nd, 2014
Harbin Bank will apply soon for an international public offering on the Hong Kong stock market, the first in what may be a series of “smaller” mainland Chinese banks seeking such a listing. The trend results from two dynamics. The first is the desire of these smaller banks to bolster their capital adequacy ratios. The second is the inability of such banks to list on the Shanghai and Shenzhen exchanges due to domestic regulatory obstacles.
February 2nd, 2014
As a result of declining sales, Revlon, a US cosmetics company, announced that it planned to terminate its China operations and eliminate more than 1,000 positions. While the US $22 billion China cosmetics’ market has been growing impressively, foreign firms have faced a variety of difficulties ranging from bribery scandals to problems with product distribution and retailing.
February 2nd, 2014
Toyota has hinted it may withdraw from Vietnam if Hanoi does not take steps to improve the country’s automobile environment. At present, Vietnam imposes an import tariff of 60% to protect its indigenous industry. Neither has the government taken adequate measures to enhance the national demand for automobiles.
February 2nd, 2014
With US, European, and Japanese growth anemic after 2008, Japanese companies have concentrated their investments in China. In recent years, though, Japanese firms, especially in consumer electronics, have been shifting a greater amount of investment to India.

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