There often seems to be a kind of absurd logic to investment in China. A story told to me recently by a Chinese private equity investor did little to assuage these suspicions.
This investor is a gentleman of not inconsiderable size. A few years ago, he was busy crisscrossing the country in search of deals. China’s airlines are not known for their comforts, and the investor soon tired of wedging his frame into countless plane seats. Gradually he narrowed down his targets to a wind power company in the western region of Xinjiang and a solar power company in a more accessible coastal province.
“In the end it had to be the solar company,” the investor said. “I just couldn’t face any more of those flights to Xinjiang.”
The solar company ended up raising millions through a listing in the US. And what about the wind power company? Who knows.