Chinese investment bank CICC Capital has terminated its cooperation with a leading consulting firm Capvision Partners, which provided services for due diligence. Such a decision was made by the PRC government after an investigation as part of measures to protect confidential corporate information.
According to the conclusion of experts, Capvision conducted projects with foreign companies, which contained confidential information on developments in the field of defense and advanced technology. As a result, Capvision was subjected to a special corporate audit and measures were taken to cease operations in China.
According to the experts, Capvision, in cooperation with foreign companies, conducted projects containing confidential information on developments in the field of defense and advanced technology. As a result, Capvision was subjected to a special corporate audit and steps were taken to cease operations in China.
Our analysts argue that the decision released by CICC has more to do with the emergence of fears among financial sector participants following Beijing's tightening of requirements for consulting firms and their clients. Moreover, their worries are also fuelled by recently updated legislation to combat the transmission and dissemination of any information related to the PRC's national security. In this regard, companies doing business in China remain cautious, especially after restrictions during the pandemic and a series of Western sanctions against Chinese firms.
According to the conclusion of experts, Capvision conducted projects with foreign companies, which contained confidential information on developments in the field of defense and advanced technology. As a result, Capvision was subjected to a special corporate audit and measures were taken to cease operations in China.
According to the experts, Capvision, in cooperation with foreign companies, conducted projects containing confidential information on developments in the field of defense and advanced technology. As a result, Capvision was subjected to a special corporate audit and steps were taken to cease operations in China.
Our analysts argue that the decision released by CICC has more to do with the emergence of fears among financial sector participants following Beijing's tightening of requirements for consulting firms and their clients. Moreover, their worries are also fuelled by recently updated legislation to combat the transmission and dissemination of any information related to the PRC's national security. In this regard, companies doing business in China remain cautious, especially after restrictions during the pandemic and a series of Western sanctions against Chinese firms.