Shenzhen Development Bank

Posted: 19 Nov 2009

See all articles by Li Jin

Li Jin

Harvard Business School - Finance Unit

Yuhai Xuan

University of California, Irvine - Paul Merage School of Business

Xiaobing Bai

Harvard Business School

Date Written: August 21, 2009

Abstract

Weijian Shan, Managing Partner of Newbridge Capital, faces a tough call in regard to his firm's investment in Shenzhen Development Bank, China's fifteenth largest commercial bank listed on the Shenzhen Stock Exchange. Due to the aggressive lobby of the existing management at the bank, the Shenzhen government didn't receive central government's support on Newbridge's investment, and had to back out of the deal with Newbridge. Weijian Shan has to make a choice between two alternatives: 1) Give up pursuing the deal given huge political risk out of his control; 2) Work out an action plan and re-negotiate the deal.

Suggested Citation

Jin, Li and Xuan, Yuhai and Bai, Xiaobing, Shenzhen Development Bank (August 21, 2009). HBS Case No. 210-020, Harvard Business School Finance Unit, Available at SSRN: https://ssrn.com/abstract=1508671

Li Jin (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-5590 (Phone)
617-496-5271 (Fax)

Yuhai Xuan

University of California, Irvine - Paul Merage School of Business ( email )

4291 Pereira Drive
Irvine, CA California 92697-3125
United States

HOME PAGE: http://yuhai.merage.uci.edu/

Xiaobing Bai

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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