Climate Change Capital’s To Invest China’s Cleantech Firms
In the Business Green coverage of Climate Change Capital’s plan to enter into China, the China MD Ka Keung Chan made the statement:
“There are a lot of cheap assets lying out there,” he told Reuters. “If you see the right company, this is the best time to negotiate.”
followed by founder James Cameron
“Out of necessity comes opportunity,” he said. “We now have a chance to rethink our relationship with money, to realise that it matters how we create wealth as well as how much of it we create.”
It is a statement I have heard over and over in China in my time here, but in the current environment I would have to agree. After all, for most of 2006 and 2007 as P/E ratios were reaching 30-40, many P/E firms were simply unable to compete with their offers for 12~15.
With the IPO market off, this is just added ammunition for fund managers.
The only question now is whether or not they will be able to find the deals… will they continue to get on the same bus as other fund managers and simply visit the same companies that have been visited by others? Or will they break away from the pack and identify deals in places (with companies) that were previously not idenitified or considered by the other funds who thought China was ripe for the picking.
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