A Tough Call

A Tough Call

After the deal was announced in September 2002, the transitional management committee was soon established and started working with the existing management team at SDB. Now, eight months later, SDB, in a surprise move, unilaterally renounced the management contract and dissolved the management committee. Speculation over the reason for the public falling-out soon ran rampant. It was suggested that since SDB ’s share price had gone up significantly after the Newbridge deal was announced, the current management team argued that SDB was highly undervalued by the “greedy” Newbridge investors and pointed out that there were other parties

willing to pay more. 61 Moreover, some entrenched managers acting on personal considerations might have resisted the deal and sought other potential bidders who were more likely to keep the existing management team. 62 Indeed, Chinatrust Commercial Bank, one of the largest commercial banks in Taiwan, emerged as a potential bidder with a higher offer. 63 Lastly, top government officials

who were key backers of the deal might have been replaced, adding to the uncertainty. 64

At the center of media and public attention, and with his firm ’s and his personal reputation on the line, Shan found himself in a situation that might require as much patience and perseverance as he had needed through his hardship at youth in the Gobi Desert. What should he do to revive the deal, or should he give up pursuing the deal altogether?

210-020 Shenzhen Development Bank

Exhibit 1 China Banking Loan and Deposit Growths

Total Deposits (US$ Bn)

Total Loans (US$ Bn)

Source: Adapted from China Statistical Yearbook, 1997-2003, National Bureau of Statistics of China.

Exhibit 2 Mortgage Penetration in Asian Countries (2002)

Mortgage as % of GDP

Mortgage as % of Total Loans

Singapore Hong Kong

Source: China Banks, Goldman Sachs Research, September 15, 2004.

Shenzhen Development Bank 210-020

Exhibit 3 China Banking System (2002)

State Council

Central Bank:

Banking Regulator:

People’s Bank of China

China Banking Regulatory

(PBOC)

Commission (CBRC)

Commercial Banks

Policy Banks

• State banks (4)

• Agricultural Development Bank

• Joint-stock banks (11)

of China

• Commercial banks

• China Development Bank

• Credit cooperatives

• Export-Import Bank of China

• Foreign banks

State Banks

Joint-Stock Banks

Others

• Agricultural Bank of China

• Commercial banks (urban and • Bank of China

• Bank of Communications

• China Everbright Bank

rural)

• China Construction Bank

• Credit cooperatives (urban and • Industrial and Commercial

• China Merchants Bank

• China Minsheng Bank

rural)

Bank of China

• CITIC Industrial Bank

• Finance, lease, trust and

• Evergrowing Bank

investment companies

• Guangdong Development Bank

• Foreign financial institutions

• Huaxia Bank • Industrial Bank • Shanghai Pudong

Development Bank • Shenzhen Development Bank

Source: China Banking Regulatory Commission.

210-020 Shenzhen Development Bank

Exhibit 4 Operating and Financial Statistics of Selected Joint-Stock Banks in China (2002)

Gross

Market Share

Total Bank Name

Assets

Loans Corporate

Deposits

No. of No. of Total

(US$ MM) (US$ MM) Loans (%) (US$ MM) Branches

Staff Loans Deposits

Bank of Communications (BoCom)

China Merchants Bank (CMB)

China Minsheng Banking Corp. (Minsheng)

Huaxia Bank (Huaxia)

Shanghai Pudong Development Bank (SPDB)

Shenzhen Development Bank (SDB)

Source: Compiled from company annual reports; Goldman Sachs Research, October 6, 2004, January 5, May 28, July 29, 2005; Morgan Stanley Research, August 16, September 30, 2004; UBS Equity Research, May 23, 2003, August 11, 2004, March 17, 2005.

Exhibit 5 Capital Adequacy in Banking Sectors Across Asian Countries (2002)

Hong Kong

Source: China Banking, CICC Research, March 4, 2004.

Shenzhen Development Bank 210-020

Exhibit 6 SDB Historical Financial Information (Figures in US$ MM)

Income Statement

Total Operating Income

Net Interest Income

Net Fee Income

Other Income

Operating Expense (142) (206) (258)

Pre-Provision Profit 74 108 184

Net Profit 56 46 47

Balance Sheet

Gross Loans

Net Loans 4,025

Other Interest-earning Assets 3,497

Total Interest-earning Assets

Total Assets

Customer Deposits 6,264 10,442 13,674

Other Interest-earning Liabilities

Total Interest-earning Liabilities

Total Liabilities

Source: SDB annual reports.

210-020 Shenzhen Development Bank

Exhibit 7 SDB Shareholding Structure (2002)

Tradable Non-tradable

Rank Shareholders

1 Shenzhen City Investment Management

5.8% 3 Shenzhen Labor and Social Security Bureau

2 Shenzhen International Trust & Investment

4.0% 4 Shenzhen China Electronics Investment

3.2% 5 Shen Yin Wan Guo Securities

3.1% 6 Haitong Securities

1.7% 7 Shenzhen City Construction Development

1.3% 8 Delong International Strategic Investment

1.3% 9 Shanghai Guozhi Property Development

1.1% 10 Agricultural Bank of China

Source: SDB annual report, 2002.

Exhibit 8 SDB Historical Loan Breakdown and Reserves

Gross Loans (US$ MM)

8,611 Special Mention

Reserve Ratio Guideline Normal

0% 1% 1% Special Mention

Actual LLRs (US$ MM)

Source: SDB annual reports.

Shenzhen Development Bank 210-020

Exhibit 9 Selected SDB Historical Financial Ratios

2002A Asset Quality

2000A

2001A

NPL/Gross Loans 22.7% 15.3% 11.6% LLR/Gross Loans

3.9% LLR/NPL

Capital Adequacy Tier 1 CAR

N/A N/A 5.2% Total CAR

9.5% Equity/Gross Loans

N/A

5.1% Equity/Total Assets

Earning Capability Net Interest Margin a 3.5% 2.8% 2.4% Non-Interest Income/Operating Income

9.5% Operating Expense/Operating Income

ROAA b 0.9%

ROAE c 22.4%

Growth Gross Loan

17.7% 49.1% 57.3% Total Asset

37.2% Customer Deposit

30.9% Net Interest Income

36.5% Non-Interest Income

106.7% Pre-Provision Profit

70.8% Net Profit

Liquidity Gross Loans/Deposits

69.1% 61.8% 74.3% Avg. Gross Loans/Avg. Interest-Earning Assets

Source: Compiled from SDB annual reports. a Net Interest Margin = Net Interest Income / Average Interest-Earning Assets b ROAA = Net Income / Average Total Assets c ROAE = Net Income / Average Equity

210-020 Shenzhen Development Bank

Exhibit 10 Benchmarking SDB Against Other Joint-Stock Banks (2002)

Equity/ Bank

Loans/ Net Int.

Earning Bank

Non-Int. Inc.

Op. Exp./

Loans/

Margin

/Op. Inc.

Op. Inc.

Source: Compiled from company annual reports; Goldman Sachs Research, October 6, 2004, May 28, July 29, 2005; Morgan Stanley Research, August 16, September 30, 2004.

Shenzhen Development Bank 210-020

Exhibit 11 Profiles of CEO and Board Member Candidates

Name Position

Background

Jeffrey R. Williams CEO Mr. Williams was the first Chief Executive of a U.S. bank in China when he first helped Citibank establish its first branch in Shenzhen in 1988. In the late 1980s, he also spent three years with Citibank in Hong Kong and China. He served as Country Chief Executive of Taiwan at Standard Chartered in 1999-2002. Prior to that, Mr. Williams was the Taiwan country manager for American Express's Travel Related Services for five years. He holds a BA degree from Harvard College and an MBA degree from Harvard Business School. Mr. Williams is a fluent Mandarin speaker.

John D. Langlois Chairman Dr. John D. Langlois, Jr. is the Chairman of Morgan Stanley Properties China. He joined Morgan Stanley in September 2002. Since 2002 he has been a director of the Bank of Shanghai, Shanghai, China, and was a director of the Nanjing City Commercial Bank, Nanjing, China. From 1999-2001, he taught at Princeton University. From 1982-1999, he worked at J.P. Morgan & Co. Incorporated, New York. His most recent assignment there was chief representative and managing director, Beijing Representative Office. He held previous assignments in New York, Tokyo, Hong Kong, and London. Dr. Langlois received his Ph.D. in East Asian Studies from Princeton University in 1974. He also received an MBA degree from New York University in 1986, a Master of Arts degree from Harvard University in 1966, and a Bachelor's degree from Princeton University in 1964.

John T. Olds Vice Chairman Mr. Olds is currently a senior advisor of Newbridge Capital. He was CEO of DBS from August 1998 until January 2001, and Vice Chairman from August 1998 until May 2001. He has 35 years of experience as a career banker, 24 of which were spent with J.P. Morgan.

Daniel A. Carroll Director Mr. Carroll is co-Managing Partner of Newbridge Capital. He joined Newbridge Capital in 1995. Prior to 1995, Mr. Carroll spent nine years with Hambrecht & Quist Group. He had also worked at Morgan Stanley. Mr. Carroll holds a BA in Economics from Harvard University, and an MBA from the Graduate School of Business at Stanford University.

Timothy D. Dattels Director Mr. Dattels is a Managing Director of Newbridge Capital. Mr. Dattels retired as Managing Director at Goldman Sachs in January 2003. He has held various management positions at Goldman Sachs since joining the firm from First Boston in 1990. He was elected Partner in 1996 and also served on the firm's Management Committee in Asia. He holds a BA from University of Western Ontario and an MBA from Harvard Business School.

Au Ngai Director Mr. Ngai is a Managing Director of Newbridge Capital. He has primary responsibility for managing Newbridge's investments in China, Hong Kong, and Taiwan. Prior to joining Newbridge Capital in 1995, Mr. Ngai had worked at Bankers Trust in Hong Kong as well as A.T. Kearney. Mr. Ngai received

a BA in Economics from Concordia University and an MBA from McGill University.

Weijian Shan Director Mr. Shan is co-Managing Partner of Newbridge Capital. Prior to joining Newbridge, he had worked at J.P. Morgan, the Wharton School of University of Pennsylvania, and the World Bank.

Frank N. Newman Independent Mr. Newman is the Chairman Emeritus of Bankers Trust Corporation. He is also a member of the Director

Board of Trustees of the Carnegie Hall Society and a member of the Board of Overseers of Cornell University Weill Medical College. Mr. Newman was formerly the Chairman, President and CEO of Bankers Trust. Prior to joining Bankers Trust, Mr. Newman served as the Deputy Secretary of the

United States Department of the Treasury. Previously, he was the Vice Chairman and CFO at Bank of America for 6 years, and the CFO in Wells Fargo Bank for 5 years.

Michael O'Hanlon Independent Mr. O'Hanlon is a Managing Director and Head of the Financial Sponsors Group at Lehman Brothers Director

Japan, Inc. He has been with Lehman Brothers and its affiliates since 1980. Previous positions at Lehman Brothers have included Head of the Global Financial Institutions Group and Head of the Real Estate and Mortgage Industries Group.

Source: SDB public filings.

210-020 Shenzhen Development Bank

Exhibit 12 Performance of Banking Stocks Against Market Performance

Market Index

Source: Bloomberg LP.

210-020 -23-

This document is author Exhibit 13 Comparable Company Valuation

Book Value

Earnings

Pre-Provision

Per Share

Per Share (EPS)

Profit (PPP)

Price to Book

Price to Earnings

Price to PPP

(P/PPP) iz Bank

Market Cap. a (RMB)

(RMB)

(US$ MM)

(P/B)

(P/E)

(US$ MM)

For e

ed f

or use only in FINS3630_5530 b CMB

17.6 x Minsheng

20.1 x SPDB

xc

lusive use at Univer

Average 3.1 x

Source: Compiled from China Stock Market & Accounting Research Database (CSMAR); Goldman Sachs Research, October 6, 2004, January 5, 2005; Morgan Stanley Research August 16, September 30,

y Lixiong Guo 2004; CICC Research, March 4, 2004. a Based on average daily market value in April 2003.

, Univ ersity of Ne

sity of Ne

w South

W ales from A

w South

ugust 2015 to F

ebr uar y 2016.

W ales,

210-020 Shenzhen Development Bank

Endnotes

1 “China’s Patient Crusader,” The Economist, May 14, 2005, http://www.economist.com/printedition/ displayStory.cfm?story_id=3960876, accessed on August 11, 2009. 2 Yue, Bingqing, “Newbridge Acquiring Shenzhen Development Bank” (in Chinese), Sohu Business at Sohu.com, September 25, 2003, http://business.sohu.com/55/96/article213639655.shtml, accessed on August 11,

2009. 3 Newbridge press release, May 12, 2003; Clifford, Mark L., “Banking’s Great Wall,” BusinessWeek, June 2, 2003, http://www.businessweek.com/magazine/content/03_22/b3835160_mz033.htm, accessed on August 11,

2009; Sender, Henry, “Horseman at the Gates,” Far Eastern Economic Review, June 12, 2003. 4 National Bureau of Statistics of China, China Statistical Yearbook, 1997-2003.

5 Fox-Pitt, Kelton, Asian Banks 2005 Outlook, January 2005. 6 National Bureau of Statistics of China, China Statistical Yearbook, 2003. 7 Goldman Sachs Research, China Banks, September 15, 2004. 8 China Automotive Research Center, China Automotive Industry Yearbook, 2003; Goldman Sachs Research,

China Banks , June 5, 2003, September 15, 2004. 9 China Banking Regulatory Commission, http://www.cbrc.gov.cn/chinese/info/yjhjj/index.jsp, accessed on August 14, 2009. 10 National Bureau of Statistics of China, China Statistical Yearbook, 2003.

11 “The People’s Bank of China Draws up the Guidance on Provisioning for Loan Losses,” April 25, 2002, http://www.pbc.gov.cn/english//detail.asp?col=6800&ID=43, accessed on August 14, 2009. 12 Goldstein, Brian L. , “Realistic Exuberance,” China Business Review, Volume 29, Issue 3, May 1, 2002.

13 UBS, China’s Financial Sector Roadmap, November 5, 2004. 14 CICC Research, China Banking, March 4, 2004. 15 Ibid. 16 Ibid. 17 SDB annual report 2002. 18 National Bureau of Statistics of China, China Statistical Yearbook, 2003-2006. 19 TPG and Newbridge press releases; BusinessWeek private company information. 20 TPG and Newbridge press releases; He Shanshan , “Shenzhen Development Bank and Newbridge Capital:

Acquisition of Chinese Banks by Foreign Capital? ” (in Chinese), San Lian Life Week, November 4, 2002, http://business.sohu.com/14/55/article204115514.shtml, accessed on August 11, 2009; Jia, Yubao , “New Bridge’s $840M Investment in Taishin Bank” (in Chinese), 21st Century Business Herald, February 7, 2006, http://finance.sina.com.cn/money/bank/ bank_hydt/20060207/14492322784.shtml, accessed on August 11, 2009.

21 Schuman, Michael , “‘Barefoot’ Banker Strikes Gold,” Time, May 28, 2005, http://www.time.com/time/ magazine/article/0,9171,1039731,00.html, accessed on August 10, 2009. 22 Biography of Weijian Shan at the Wharton Global Alumni Forum —Hong Kong, May 25–26, 2007, http://www.whartonhongkong07.com/bio-s-shan.html, accessed on August 11, 2009.

Shenzhen Development Bank 210-020

23 Li, Liming , Yanchun Wang, and Chaoge Shi, “Banking Tycoon Weijian Shan Enters the Chinese Banking Industry ” (in Chinese), The Economic Observer, December 30, 2002, http://finance.sina.com.cn/roll/20021230/ 1114296285.shtml, accessed on August 11, 2009.

24 He, Shanshan , “Shenzhen Development Bank and Newbridge Capital: Acquisition of Chinese Banks by Foreign Capital? ” (in Chinese), San Lian Life Week, November 4, 2002, http://business.sohu.com/14/55/

article204115514.shtml, accessed on August 11, 2009 ; “Where is Shenzhen Development Bank Headed?” (in Chinese), China Entrepreneur, September 2006, http://finance.sina.com.cn/money/bank/bank_yhpl/20060919/ 17382928761.shtml, accessed on August 11, 2009.

25 Data in this section is compiled from the SDB annual report 2002. 26 Zhang, Nianqing, “Months Later: Setback in Newbridge’s Investment in Shenzhen Development Bank” (in

Chinese), Beijing Youth Daily, February 14, 2003, http://news.xinhuanet.com/stock/2003-02/14/content_ 728899.htm, accessed on August 11, 2009; Li, Liming , “Ranked Last Among Public Banks: Who Will Save Shenzhen Development Bank” (in Chinese), People’s Daily, May 26, 2004, http://data.book.hexun.com/ 661093.shtml, accessed on August 11, 2009.

27 Sender, Henry, “Horseman at the Gates,” Far Eastern Economic Review, June 12, 2003; Li, Liming, Yanchun Wang, and Chaoge Shi, “Banking Tycoon Weijian Shan Enters the Chinese Banking Industry,” (in Chinese), The Economic Observer , December 30, 2002, http://finance.sina.com.cn/roll/20021230/ 1114296285.shtml, accessed

on August 11, 2009. 28 Ba, Shusong, Confronting the Sophistication and Naivety of the Finance Industry, Guangdong Economics Publishing, 2004. 29 China Banking Regulatory Commission.

30 SDB annual report 2002. 31 Shen, Han, “Behind the Scene of Newbridge’s Parting from Shenzhen Development Bank” (in Chinese),

21st Century Business Herald , May 15, 2003, http://www.21cbh.com/HTML/2003-5-15/9756.html, accessed on January 28, 2011.

32 CICC Research, China Banking, March 4, 2004. 33 SDB annual report 2002. 34 CICC Research, China Banking, March 4, 2004. 35 SDB annual reports 2000, 2001, and 2002. 36 Li, Liming , Yanchun Wang, and Chaoge Shi, “Banking Tycoon Weijian Shan Enters the Chinese Banking

Industry, ” (in Chinese), The Economic Observer, December 30, 2002, http://finance.sina.com.cn/roll/20021230/ 1114296285.shtml, accessed on August 11, 2009.

37 Ba, Shusong, Confronting the Sophistication and Naivety of the Finance Industry, Guangdong Economics Publishing, 2004. 38 Liu, Caina, “What Went Wrong at Shenzhen Development Bank” (in Chinese), China Business Times, January 28, 2003, http://news.xinhuanet.com/fortune/2003-01/28/content_710939.htm, access on August 11,

2009; “China Finance: Newbridge to the Mainland,” The Economist, June 4, 2004, http://www.economist.com/ finance/displaystory.cfm?story_id =E1_NSPSDPP, accessed on August 11, 2009.

39 Sender, Henry, “Pulling the Plug,” Far Eastern Economic Review, June 12, 2003; “A Great Big Banking Gamble: China’s Banking Industry,” The Economist, October 29, 2005, http://www.economist.com/printedition/ displaystory.cfm?story_id= E1_VDRTDJD, accessed on August 11, 2009.

210-020 Shenzhen Development Bank

40 Liang, Kezhi , “Shenzhen Development Bank: A Publicized Acquisition,” 21st Century Business Herald, January 2009, http://bank.jrj.com.cn/2009/01/0602183242958.shtml, accessed on August 11, 2009. 41 Li, Liming , “Ranked Last Among Public Banks: Who Will Save Shenzhen Development Bank” (in Chinese), People’s Daily, May 26, 2004, http://data.book.hexun.com/661093.shtml, accessed on August 11, 2009. 42 Li, Liming , Yanchun Wang, and Chaoge Shi, “Banking Tycoon Weijian Shan Enters the Chinese Banking Industry ” (in Chinese), The Economic Observer, December 30, 2002, http://finance.sina.com.cn/roll/20021230/ 1114296285.shtml, accessed on August 11, 2009.

43 He, Shanshan , “Shenzhen Development Bank and Newbridge Capital: Acquisition of Chinese Banks by Foreign Capital? ” (in Chinese), San Lian Life Week, November 4, 2002, http://business.sohu.com/14/55/

article204115514.shtml, accessed on August 11, 2009. 44 Chan, Christine , “Who Do You Think You Are? Shan Weijian Newbridge Chief Confident as Firm Takes on China,” South China Morning Post, January 2, 2003. 45 Ibid.

46 Ibid.; Wenjun Liu, “Newbridge Stuck at Shenzhen Development Bank” (in Chinese), Securities Markets Weekly , September 12, 2006, http://www.p5w.cn/stock/news/gsxw/200609/t514491.htm, accessed on August

11, 2009; Sender, Henry, “Newbridge Tries Golden Touch at Chinese Bank,” The Asian Wall Street Journal, May 16, 2005.

47 He Shanshan, “Shenzhen Development Bank and Newbridge Capital: Acquisition of Chinese Banks by Foreign Capital?” (in Chinese), San Lian Life Week, November 4, 2002, http://business.sohu.com/14/55/

article204115514.shtml, accessed on August 11, 2009. 48 Zhang, Nianqing, “Months Later: Setback in Newbridge’s Investment in Shenzhen Development Bank” (in Chinese),

Beijing Youth Daily , February 14, 2003, http://news.xinhuanet.com/stock/2003-02/14/ content_728899.htm, accessed on August 11, 2009; Li, Liming, “Ranked Last Among Public Banks: Who Will Save Shenzhen Development Bank ” (in Chinese), People’s Daily, May 26, 2004, http://data.book.hexun.com/ 661093.shtml, accessed on August 11, 2009.

49 Chan, Edwin , “China Bank Ousts U.S. Manager in Acquisition Setback,” Reuters News, May 12, 2003. 50 Li, Liming , Yanchun Wang, and Chaoge Shi, “Banking Tycoon Weijian Shan Enters the Chinese Banking

Industry ” (in Chinese), The Economic Observer, December 30, 2002, http://finance.sina.com.cn/roll/20021230/ 1114296285.shtml, accessed on August 11, 2009; He, Shanshan, “Shenzhen Development Bank and Newbridge Capital: Acquisition of Chinese Banks by Foreign Capital?” (in Chinese), San Lian Life Week, November 4, 2002, http://business.sohu.com/14/55/ article204115514.shtml, accessed on August 11, 2009.

51 SDB public filing, June 1, 2004. 52 Li, Liming , “Ranked Last Among Public Banks: Who Will Save Shenzhen Development Bank” (in

Chinese), People’s Daily, May 26, 2004, http://data.book.hexun.com/661093.shtml, accessed on August 11, 2009; Dong, Xiaochang , “A Great Step for Shenzhen Development Bank” (in Chinese), China Internet Week, January 2005, http://qkzz.net/magazine/1007-9769/2005/01/7324.htm, accessed on August 11, 2009.

53 Chan, Christine , “Who Do You Think You Are? Shan Weijian Newbridge Chief Confident as Firm Takes on China,” South China Morning Post, January 2, 2003. 54 Li, Liming , Yanchun Wang, and Chaoge Shi, “Banking Tycoon Weijian Shan Enters the Chinese Banking Industry” (in Chinese), The Economic Observer, December 30, 2002, http://finance.sina.com.cn/roll/20021230/

1114296285.shtml, accessed on August 11, 2009; Zhang, Nianqing, “The Reunion of Newbridge and Shenzhen Development Bank” (in Chinese), Beijing Youth Daily, June 1, 2004, http://money.163.com/economy2003/ editor_2003/040601/040601_206880.html, accessed on August 11, 2009.

Shenzhen Development Bank 210-020

55 Lai, Xinzhi , “A Pioneer’s Path: The Significance of Newbridge’s Investment in Shenzhen Development Bank” (in Chinese), Win Weekly, February 13, 2006, http://www.ceoun.com/news_info_past.asp?Id=168, accessed on August 11, 2009.

56 IFC press release, September 9, 1999; Lin, Jing, “Acquisitions by Foreign Banks in China” (in Chinese), Caijing Magazine , June, 5, 2004, http://finance.sina.com.cn/g/20040609/1709805029.shtml, accessed on January

20, 2011; Cao, Haili, “Bank of Shanghai: Taking Steps from Naivety” (in Chinese), Caijing Magazine, December 27, 2004, http://finance.sina.com.cn/ money/bank/bank_yhyj/20041231/11551265156.shtml, accessed on January 20, 2011.

57 Shanghai Bank annual reports, 2001, 2002; CITIC International Financial Holdings Limited news release, June 30, 2006. 58 Pudong Development Bank annual reports 2002 and 2003; “Citibank’s Investment in Pudong Development Bank” (in Chinese), 21st Century Business Herald, January 9, 2003, http://stock.jrj.com.cn/2003-01-

09/000000480265.shtml, accessed on August 20, 2009; “Citibank’s Stake in Pudong Development Bank May Increase” (in Chinese), China Securities Journal, April 25, 2003, http://stock.jrj.com.cn/2003-04-25/ 000000551120.shtml, accessed on August 20, 2009.

59 SDB public filing, June 1, 2004. 60 Chan, Edwin , “China Bank Ousts U.S. Manager in Acquisition Setback,” Reuters News, May 12, 2003. 61 Sender, Henry, “Pulling the Plug,” Far Eastern Economic Review, June 12, 2003. 62 Chan, Edwin , “China Bank Ousts U.S. Manager in Acquisition Setback,” Reuters News, May 12, 2003.

63 Sender, Henry, “Pulling the Plug,” Far Eastern Economic Review, June 12, 2003; Clifford, Mark L., “Banking’s Great Wall,” BusinessWeek, June 2, 2003, http://www.businessweek.com/magazine/content/03_22/

b3835160_mz033.htm, accessed on August 11, 2009; Li, Liming, and Li Mo, “The Reason Behind the Sudden Falling- Out Between Newbridge and Shenzhen Development Bank” (in Chinese), The Economic Observer, May 17, 2003, http://finance.sina.com.cn/roll/20030517/ 1928341692.shtml, accessed on August 11, 2009.

64 Clifford, Mark L., “Banking’s Great Wall,” BusinessWeek, June 2, 2003, http://www.businessweek.com/ magazine/content/03_22/b3835160_mz033.htm, accessed on August 11, 2009.