There are many possible reasons why the partnership failed: one view is that the joint venture was flawed from the start and that the Chinese partners expected the French to deliver more than they did; others said that the Chinese managers were truculent and stubborn.
Two key events seem to have sealed its fate. A disagreement emerged about the way to attract new funds: the Chinese wanted the French to contribute more money to hire new investment bankers; the French were reluctant.
Second, the joint venture lost a key banker, Henry Cai, who went to UBS in March 2006, thereby depriving the business of one of the most important specialists and 'rainmakers' in Chinese equities.
High and dry
Asiamoney, Vol XVIII No 1, February 2007
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