Explore BrainMass
Share

China Mobile International Equity Issue

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

The closing case describes China Mobile's expansion plans and efforts to raise the capital necessary to implement them. China Mobile, based in Hong Kong, is one of the world's largest mobile telephone service providers. China Mobile, concerned about the new competition it might face if China joined the World Trade Organization, wanted to quickly establish itself in seven more Chinese provinces. To do so, the company needed to raise $32.8 billion. China Mobile made the decision to raise the capital in the global capital market.

QUESTION 1: Why did China Mobile feel it was necessary to issue equity in markets outside of its home base in Hong Kong? What are the advantages of such a move?
QUESTION 2: Why did China Mobile price the bond issue in U.S. dollars instead of Hong Kong dollars?
QUESTION 3: Can you see any downside to China Mobile's international equity and bond issue?

© BrainMass Inc. brainmass.com October 25, 2018, 7:32 am ad1c9bdddf
https://brainmass.com/business/business-culture-in-china/china-mobile-international-equity-issue-506561

Solution Preview

Q1. The global market is much larger and liquid compared to Hong Kong's capital market. The company will be able to raise much larger pool of funds by issuing equity in global markets such as the New York Stock Exchange (NYSE) or the London Stock exchange as compared to Hong Kong's capital markets. As the size of the issue is huge, it is a wiser decision on part of the company to raise funds in the global markets. The company ...

Solution Summary

Discusses various aspects of international equity issue of China mobile.

$2.19
See Also This Related BrainMass Solution

Negotiation and Culture - the Ericsson Case

I need your assistance with the following:

Review the case study of Ericsson's negotiations with the Chinese telecommunications organisations. Drawing on the topics and theories that you have studied in this course, write a Discussion posting that describes what Ericsson did that was effective and what it did that was ineffective in its approach to cross-cultural management. In explaining your answer, make specific reference to at least two of the following cultural dimensions: communication, ethics, relationships, marketing, human resource management, and cultural characteristics (using any of the models - hofstede's, Hall, etc.) specific to the Swedish or Chinese culture.

Please use the attached article for referencing.

Thank you.

View Full Posting Details