Citic Capital's chief executive Zhang Yichen is concentrating on finding smaller companies in China that have growth potential, but need a leg up with capital and management skills. Large SOEs are not the most attractive clients, he says, because over time they will lose market share. "There's are not many well-managed companies in China," he says. As a Harbin native, Zhang had been advising the Harbin municipal government for several years about investment strategy. "I told them to attract smart foreign investment, you have to be willing to let go of the best-run companies instead of the worst-run companies."
May 01, 2005