Building Business in China: The Shui On Way


Code : BSM0016

Year :

Industry : Building Materials and Construction Equipment

Region : China

Teaching Note:Not Available

Structured Assignment :Not Available

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China's Construction Industry: Regulatory Framework (1980-2004) AfterChina initiated the economic reforms in 1978, the early 1980switnessed a transition in the country’s economy to a more liberalisedmarket driven system. The economic reforms resulted in the development of all the industrial sectors in the country. The construction industry also witnessed accelerated growth as the economic development led to increased urbanization and higher demand for infrastructural facilities like public utilities, roads, public transport and communication, dams, commercial complexes and residential buildings...

Vincent Lo's Shui On Group: Growing on Guanxi The Shui On (China) Ltd was formed in 1984 to expand the interests of the Hong Kong based Shui On Group in China. Vincent Lo, the chairman of the ShuiOnGroup formed a joint venturewith the ShanghaiCommunist Youth League to build the three-star City Hotel in Shanghai. The $23million venture started operating in 1989.When the Shanghai Communist Youth League could not repay its construction loan due to low revenues from the hotel in the aftermath of the Tiananmen Square massacre, Vincent Lo helped them out. He once said, "They've never forgotten. Relationships are long termhere". This laid the foundation of Vincent Lo's association with officials and bureaucrats in China...

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