Basic Due Dillegence Questions for China Investment

From this China Investor Relations post comes a brief sampling of the kinds of questions experienced western investment professionals will want answers to before they even consider investing in a new business in China.

1) Why is the company engaged in this business?

2) What % of the CEOs time is spent running the business?
a.How many hours per week is he in the office?

3) What % of the CFOs time is spent running the business?
a. How many hours per week is he in the office?

4) Who on the management team has government connections?

5) Who on the management team has experience in this industry?
a. How were they selected to be on the management team?

6) Do any of the officers of the company have any other business interests?

7) Is there an organizational chart?
a. Is it up to date?
b. Is it realistic?

8 ) Where is the technology from?

9) Is there a clear plan for:
a. Marketing
b. Staff development
c. Management development
d. Product development

10) Exit strategy
a. What will you do if the company is successful?
b. What will you do if it isn’t?