Shenzhen Development Bank, the first publicly traded companies in China, is experiencing non-tradable share reform. At present, its controlling shareholder, private equity firm Newbridge Capital LLC, is necessary to negotiate with its various minority shareholders to find a compromise on the conditions for the transformation of non-tradable shares held by Newbridge in tradable shares. Further delay in the implementation of the reform will be put Shenzhen Development Bank is in danger, because the bank will not be allowed to raise additional capital, it is very necessary, but negotiations between Newbridge and other shareholders have been destroyed. Discussed the matter of non-tradable share reform in China, its causes and consequences, and from the point of view of one of the private equity game, discussed the issues of corporate governance, conflicts of interest and fiduciary duties of corporate managers in emerging market countries. "Hide
by Li Jin, Li Liao, Aldo Sesia, Jianyi Wu Source: Harvard Business School 14 pages. Publication Date: 01 February 2011. Prod. #: 211080-PDF-ENG
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