International Management 8th Edition by Fred Luthans,Jonathan Doh

Exercise 32

HSBC is considering asking the government of China (China Banking Regulatory Commission-CBRC) to allow it to increase its stake in BoCom above the limit currently in place (25% total foreign ownership; 20% for an individual foreign investor).Break into four groups:
1.HSBC
2.BoCom
3.Citibank
4.CBRC
Groups 1-3 should prepare a 5-minute presentation on whether the government of China should grant the request and, if so, what the ownership limit should be (30%? 50%?) and whether it should be extended to other foreign financial institutions (e.g., Citibank).Then, Group 4 should discuss the question and report its decision.
Source: This case was prepared by Jonathan Doh of Villanova University as the basis for class discussion.Research assistance was provided by Courtney Asher, Elizabeth Stewart, and Tetyana Azarova.It is not intended to illustrate effective or ineffective managerial capability or administrative responsibility.