中国移动(香港公司)案例分析

2010519罗微Chapter111WhydidChinaMobilefeelitwasnecessarytoissueequityinmarketsoutsideofitshomebaseinHongKong?Whatareadvantagesofsuchamove?Ans:First,ChinaMobileplaysaroleinborrowerincapitalmarketatthistime.ThereasonwhyitchoosetoissueequityinmarketsoutsideofitshomebaseisthatChinaMobileparticipateinTheGlobalCapitalMarket.Inapurelydomesticcapitalmarket,thepoolofinvestorsislimitedtoresidentsofthecountry.Thisplaceanupperlimitonthesupplyoffundsavailabletoborrowers.Itleadtoissueequityinmarketsoutsideofitshome.Second,theadvantagesare:￭Lowercostofcapital:thecostofcapitalislowerininternationalmarketsbecausethepoolofinvestorsismuchlargerthanindomesticmarket￭Scaleeconomieseffectandbordercapitalflows:definedasthesizeofthescaleincrease,productioncostsandoperatingcostsarereduced,whichcanobtainacostadvantage.Besides,inaborderpoolofcapital,thecapitalrunfaster.￭makecontributiontofirm’sfame:issueequityinmarketsoutsideofitshomebaseinHongKongcanattractmoreinvestorseye,thenenhancethecompany'sreputation2WhydidChinaMobilepricethebondissueinU.S.dollarinsteadofHongKongdollars?Ans:Afirmcanborrowfundsatalowercostontheglobalcapitalmarketthanonthedomesticcapitalmarket.Howeverwehavealsomentionedthatunderafloatingexchangerateregime,foreignexchangeriskcomplicatedthispicture.forexample:compared1:6to1:8PricethebondissueinU.S.dollarinsteadofHongKongdollarsalsohasafunctionofleverageormagnify.Thatistosayyouwillgainmoreorlosemore3CanyouseeanydownsidetoChinaMobile’sinternationalequityandbondissue?Ans:exchangeraterisk:unpredictablemovementsinexchangeratescaninjectriskintoforeigncurrencyborrowing,makingsomethingthatinitiallyseemslessexpensiveultimatelymuchmoreexpensivecostofcapitalrisk:duetoderegulationandreducedcontrolsoncross/bordercapitalflows,individualnationsarebecomingmorevulnerabletospeculativecapitalflows.Mostofcapitalthatmovesinternationallyispursuingtemporarygains,anditshiftsinandoutofcountriesasquicklyasconditionschange.Patientmoneyisstillrelativelyrare.informationasymmetry:investorsfromallovertheworld.Inthesocialpolitical,economicandotheractivities,somemembershavedifferentinformationthatotherdoesnot,thusresultingininformationasymmetry.Inthemarketeconomy,allkindsofrelevantinformationtounderstandthatthereisadifferenceinthemasteryofinformation;oftenatamorefavorableposition,butinformationpoorpersonnel,itisinthecomparativedisadvantage.Thankyou