China’s $1.7 trillion hangover

China’s $1.7 trillion hangover

Up to 40% of China’s $1.7 trillion LGFV loans are at high risk of default. What’s a panicking Beijing to do?

EuromoneyFXNews.com

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November 2006

Middle East: Collapsing stock markets boost private equity

by Kathryn Wells

Private equity has emerged a clear winner from stock market volatility in the Middle East – a large number of funds were set up as a result. But is there a risk of a bubble developing in this market too? Kathryn Wells finds out.


Abraaj Capital: a broad regional approach

THE STOCK MARKET crash in the Gulf earlier this year provided a clear illustration of the adage that one man’s meat is another man’s poison. When the stock market bubbles of Saudi Arabia and other Gulf states finally burst in May, sending prices diving more than 40%, not everyone was complaining.

The repricing that has taken place has woken investors up to the risks inherent in riding the equity market wave far more convincingly then the financial advisers’ mere words had been doing earlier. While some investors were wringing their hands, private equity fund managers were more sanguine.

Abe Saad, managing director of Shuaa Partners, the Dubai-based private equity arm of regional investment bank Shuaa Capital, says that he has seen a change of attitude from investors since raising his company’s first fund. The firm closed a first $200...


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