ASIA PACIFIC RISK WATCH – ISSUE 8 – AUGUST 2016
Broader due diligence needed for a more complex China market
25 August 2016
Due diligence has gained significant importance in emerging markets in recent years, particularly in China because of a number of changes in its economic, political and regulatory environments.
The effectiveness of a due diligence exercise often depends on the quality of questions being asked and the depth to which they are answered. Today, the management of integrity, political and regulatory risks – which were earlier addressed by last-minute “red flag” checks – have become the principal determinants of the long-term success of an investment, pushing investors to adopt a new approach towards strategic decision-making. A ‘routine’ due diligence in China is no longer sufficient and a more comprehensive process is called for.
In a recent article for the China Business Review, Andrew Gilholm and Carmen Liu discuss Control Risks’ specialised approach to due diligence in China, and how it can help companies to mitigate and manage risks in a more effective way.