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Money Machine: A Trailblazing American Venture in China
An extraordinary tale of an American firm’s astounding success in China
In Money A Trailblazing American Venture in China, Weijian Shan delivers a compelling account of one of the most significant deals in private equity the first and only foreign acquisition of control of a Chinese national bank. Money Machine is the fascinating inside story of the transaction as told by the man who led it, from the intrigues of dealmaking to the complex and uncharted process of securing control by a foreign investor of a Chinese nationwide financial institution, a feat that had never before been attempted, nor has it been repeated.
Shan also describes the astonishingly successful turnaround of the institution under the control of the American the clash of cultures, the growth to strength and profitability, and ultimately, the extraordinarily profitable exit from the investment. In the process, he reveals new insights into how finance operates in China’s capital system and how private equity firms can add real value to companies. Readers will also
• A peek behind the curtain of a process usually shrouded in private equity dealmaking and moneymaking
• The complex negotiations between American private equity executives and Chinese regulators to implement a series of unprecedented changes
• The riveting details of the challenges that had to be overcome to return the bank to growth and profitability
An exceptional firsthand account of truly singular deal-making and money-making, Money Machine will be of interest to investment bankers, investors, financial analysts and anyone who appreciates a suspenseful, true-life story.
In Money A Trailblazing American Venture in China, Weijian Shan delivers a compelling account of one of the most significant deals in private equity the first and only foreign acquisition of control of a Chinese national bank. Money Machine is the fascinating inside story of the transaction as told by the man who led it, from the intrigues of dealmaking to the complex and uncharted process of securing control by a foreign investor of a Chinese nationwide financial institution, a feat that had never before been attempted, nor has it been repeated.
Shan also describes the astonishingly successful turnaround of the institution under the control of the American the clash of cultures, the growth to strength and profitability, and ultimately, the extraordinarily profitable exit from the investment. In the process, he reveals new insights into how finance operates in China’s capital system and how private equity firms can add real value to companies. Readers will also
• A peek behind the curtain of a process usually shrouded in private equity dealmaking and moneymaking
• The complex negotiations between American private equity executives and Chinese regulators to implement a series of unprecedented changes
• The riveting details of the challenges that had to be overcome to return the bank to growth and profitability
An exceptional firsthand account of truly singular deal-making and money-making, Money Machine will be of interest to investment bankers, investors, financial analysts and anyone who appreciates a suspenseful, true-life story.
336 pages, Kindle Edition
Published February 1, 2023
61 people are currently reading
391 people want to read
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Displaying 1 - 20 of 20 reviews
August 5, 2024
Digestible chronicle of how an American-based private equity firm powered through regulatory hurdles and conniving business leaders (one of whom was eventually arrested for fraud) to take control of the Shenzhen Development Bank, and exit after 5 years with proceeds 14x their original investment. Pretty impressive how everything was meticulously chronicled but not too heavy on finance, and reminded me of my own frustrating times working with an American firm in China, trying to negotiate with Chinese counterparties.
Love a good turnaround story.
Love a good turnaround story.
September 11, 2024
535-Money Machine-Weijian Shan-Economics-2023
Barack
2024/09/08
"Money Machine," first published in 2023, offers a captivating account of one of the most significant transactions in private equity — the first and only foreign acquisition of control over a Chinese state-owned bank. Told by the deal's leader, "Money Machine" reveals the fascinating details of this transaction, from the intrigues of the deal to the complex and unprecedented process of foreign investors taking control of a national Chinese financial institution — a feat never attempted before and never repeated since. Shan Weijian also describes how, under American control, the institution astonishingly turned losses into profits, managed cultural conflicts, grew into a powerful and profitable bank, and eventually exited the investment in a highly profitable manner. Along the way, he provides new insights into how finance operates within China's capital system and how private equity firms can create genuine value for companies.
Weijian Shan was born in Beijing in 1954. He studied at the University of International Business and Economics (Beijing), the University of San Francisco, and the University of California, Berkeley. He is an economist, businessman, and writer currently living in Hong Kong. Shan is the Executive Chairman of PAG (Pacific Alliance Group), a leading alternative investment firm focused on the Asia-Pacific region. He is also a trustee of the British Museum and an independent director of Alibaba Group. In 1975, he returned to Beijing to study English at the University of International Business and Economics and was later sent to study in the United States as one of the first exchange students.
Table of Contents
Part I: Courtship
Chapter 1: An Unexpected Question
Chapter 2: A License to Print Money
Chapter 3: The Craft of Private Equity
Part II: Fight
Chapter 7: Tug of War
Chapter 8: Behind the Scenes
Chapter 9: Roller Coaster
Part III: Transformation
Chapter 13: Making History
Chapter 14: Righting the Ship
Chapter 15: Bank Repairman
Part IV: Exit
Chapter 19: Coveted Prize
Chapter 20: Flavor of the Day
Chapter 21: Financial Tsunami
The core content of the book narrates the author's real-life experience in a foreign acquisition of shares in a Chinese bank to gain control. The significance of this acquisition makes the firsthand account particularly compelling, much like a team launching a wildly popular game both domestically and internationally — people are often interested in the stories behind such a founding team, but only if the team has already achieved success. In other words, success is the prerequisite for gaining attention. Before achieving success, no matter how brilliant your insights are, they may fail to attract interest.
Another reflection is that we should devote ourselves to a worthwhile cause. Individual power is ultimately limited; personal existence is often insignificant. However, engaging in a phenomenal cause can bring great psychological fulfillment and even substantial economic rewards.
The foundation determines the superstructure. Sometimes, people criticize Shanghai and its residents for being calculating. However, Shanghai's economy has long been at the forefront nationwide, and despite external criticisms, many still find ways to learn, work, and live there. The same is true on a global scale: we can criticize certain countries for materialism or moral decay, but their economic prosperity is an indisputable fact that attracts countless people. The economic foundation — quantifiable like hardware — contrasts with the values, beliefs, and moral principles we discuss, which resemble software. In everyday life, while we enjoy debating these abstract issues, hardware factors like economic foundations often become the key reference points for decision-making. For this reason, economics has become a popular discipline; it studies human behavior, with one of its basic assumptions being that humans are rational. In other words, it quantifies human nature as a machine needing resources and consuming resources. Just like machines need fuel or electricity, human survival and development require various material resources, such as houses, cars, and luxurious foods. In modern society, all these are measured by money, so we pursue money.
Even someone like the author, who has seen much of the world, felt many uncertainties and doubts when faced with the historic goal of potentially allowing foreign capital to control a Chinese bank. However, the potential possibilities and enormous returns were irresistible to him. Sometimes, we think that if we could have more wealth, higher status, or greater fame, many of life's troubles would disappear. I mostly agree with this view. Having more material resources can reduce some unnecessary troubles in life. However, we must also realize that these emotional anxieties may not diminish. The anxiety may only shift its focus. For example, when our income is only a few thousand to tens of thousands, we might worry about monthly rent; when our annual salary reaches a million, we might no longer worry about rent but instead, feel anxious about buying a luxury car worth hundreds of thousands. We could say that the basic need of renting a house and the luxury need of buying a car are not the same, but the emotional experience they bring is not very different. Similarly, the author's anxiety over such a major business decision is probably inevitable.
This transaction, a $500 million acquisition of shares in a state-owned bank, was completed through rounds of negotiations and games. This explains why finance has been one of the hottest fields of study over the past three to thirty years. The finance industry is closest to money; its daily work revolves around the flow and management of capital. A heightened sensitivity to money increases the likelihood of making money. There's a saying: "With the right method, making money is as easy as breathing." This may sound like a cliché, but on closer inspection, it's quite reasonable. Looking back at the education I received in school and at home, it often emphasized linear growth — earning 10 dollars today, 10 dollars tomorrow, totaling 1,000 dollars in 100 days. However, the returns for those steering big ships in real life are often not in linearly growing patterns but are more likely exponential. Therefore, whether understanding finance or life, we should learn from those who are deemed successful in worldly terms. The more deeply we are impressed by failures, the harder it will be to escape the inertia of failure in the future.
Today, human society has evolved from a feudal to a capitalist society, with the most significant change being the shift from a bloodline-based society to one centered on capital. Undoubtedly, this transition has created many problems, such as rampant materialism, moral degradation, and the dehumanization of people into machines. However, the advantages of this social structure are also evident: it can create a powerful material civilization. It is precisely this material civilization that enabled the capitalist society to triumph over the feudal society. The "Tao Te Ching" states, "Heaven and Earth are ruthless, treating all things as straw dogs." The whole world is like a machine, and the creator of this machine does not care about how its components operate; what he truly cares about is the final outcome.
During NewBridge Capital's negotiation to acquire a 20% stake in Shenzhen Development Bank, the foreign merchants offered capital while desiring enormous returns. This return was precisely what China's unique financial environment could provide. Meanwhile, Shenzhen Development Bank provided a potential opportunity for huge returns and sought the cash needed to save the bank. In essence, everything can be reduced to two questions: What can I offer? What do I want in return?
The author essentially describes his life experience. He grew up in China's Gobi Desert, where his teenage years were relatively tough. However, with the launch of the reform and opening up in the 1980s, he had the opportunity to go to the United States. There, he completed his studies and graduated with a Ph.D., ultimately staying on to teach, which drastically altered his life's trajectory. Later, in the 1990s, a headhunter approached him with an opportunity that took him from academia to the industry, transitioning from investment banking to private equity. The NewBridge Capital acquisition of shares in Shenzhen Development Bank occurred during this period. We often say, "Choice is more important than effort." But in reality, if we do not do our current job well, new possibilities will not emerge. Just as we cannot talk about "choices" when we only have one or even no offer, we can only consider which to choose when we have three offers in hand.
The acquisition happened in 2002, shortly after China joined the WTO. Discussing this event, one cannot ignore China's rapid economic development at that time. This economic boom is naturally closely related to the reform and opening-up policies led by Deng Xiaoping. One could say that his policy drove China's reform and opening up; from the results, his influence was profound, with more advantages than disadvantages. He once said, "Let some people get rich first," which was indeed achieved under his leadership. As for "the rich leading the poor to prosperity," this is an issue that could not be completely solved during his lifetime. Sometimes, I can't help but reflect: why did the previous generation miss such a golden period for development during the reform and opening up? Why did they fail to seize the opportunities of that era? If we put ourselves in their shoes, we might realize that we may also be missing many opportunities in our own time. Since graduating from high school, leaving home, and living independently, how many opportunities of the era have I missed? People always explain the past with the result: seeing a country's good development, we find many reasons to prove its success. But when we look back on these events, can we foresee the future and seize these opportunities?
Barack
2024/09/08
"Money Machine," first published in 2023, offers a captivating account of one of the most significant transactions in private equity — the first and only foreign acquisition of control over a Chinese state-owned bank. Told by the deal's leader, "Money Machine" reveals the fascinating details of this transaction, from the intrigues of the deal to the complex and unprecedented process of foreign investors taking control of a national Chinese financial institution — a feat never attempted before and never repeated since. Shan Weijian also describes how, under American control, the institution astonishingly turned losses into profits, managed cultural conflicts, grew into a powerful and profitable bank, and eventually exited the investment in a highly profitable manner. Along the way, he provides new insights into how finance operates within China's capital system and how private equity firms can create genuine value for companies.
Weijian Shan was born in Beijing in 1954. He studied at the University of International Business and Economics (Beijing), the University of San Francisco, and the University of California, Berkeley. He is an economist, businessman, and writer currently living in Hong Kong. Shan is the Executive Chairman of PAG (Pacific Alliance Group), a leading alternative investment firm focused on the Asia-Pacific region. He is also a trustee of the British Museum and an independent director of Alibaba Group. In 1975, he returned to Beijing to study English at the University of International Business and Economics and was later sent to study in the United States as one of the first exchange students.
Table of Contents
Part I: Courtship
Chapter 1: An Unexpected Question
Chapter 2: A License to Print Money
Chapter 3: The Craft of Private Equity
Part II: Fight
Chapter 7: Tug of War
Chapter 8: Behind the Scenes
Chapter 9: Roller Coaster
Part III: Transformation
Chapter 13: Making History
Chapter 14: Righting the Ship
Chapter 15: Bank Repairman
Part IV: Exit
Chapter 19: Coveted Prize
Chapter 20: Flavor of the Day
Chapter 21: Financial Tsunami
The core content of the book narrates the author's real-life experience in a foreign acquisition of shares in a Chinese bank to gain control. The significance of this acquisition makes the firsthand account particularly compelling, much like a team launching a wildly popular game both domestically and internationally — people are often interested in the stories behind such a founding team, but only if the team has already achieved success. In other words, success is the prerequisite for gaining attention. Before achieving success, no matter how brilliant your insights are, they may fail to attract interest.
Another reflection is that we should devote ourselves to a worthwhile cause. Individual power is ultimately limited; personal existence is often insignificant. However, engaging in a phenomenal cause can bring great psychological fulfillment and even substantial economic rewards.
The foundation determines the superstructure. Sometimes, people criticize Shanghai and its residents for being calculating. However, Shanghai's economy has long been at the forefront nationwide, and despite external criticisms, many still find ways to learn, work, and live there. The same is true on a global scale: we can criticize certain countries for materialism or moral decay, but their economic prosperity is an indisputable fact that attracts countless people. The economic foundation — quantifiable like hardware — contrasts with the values, beliefs, and moral principles we discuss, which resemble software. In everyday life, while we enjoy debating these abstract issues, hardware factors like economic foundations often become the key reference points for decision-making. For this reason, economics has become a popular discipline; it studies human behavior, with one of its basic assumptions being that humans are rational. In other words, it quantifies human nature as a machine needing resources and consuming resources. Just like machines need fuel or electricity, human survival and development require various material resources, such as houses, cars, and luxurious foods. In modern society, all these are measured by money, so we pursue money.
Even someone like the author, who has seen much of the world, felt many uncertainties and doubts when faced with the historic goal of potentially allowing foreign capital to control a Chinese bank. However, the potential possibilities and enormous returns were irresistible to him. Sometimes, we think that if we could have more wealth, higher status, or greater fame, many of life's troubles would disappear. I mostly agree with this view. Having more material resources can reduce some unnecessary troubles in life. However, we must also realize that these emotional anxieties may not diminish. The anxiety may only shift its focus. For example, when our income is only a few thousand to tens of thousands, we might worry about monthly rent; when our annual salary reaches a million, we might no longer worry about rent but instead, feel anxious about buying a luxury car worth hundreds of thousands. We could say that the basic need of renting a house and the luxury need of buying a car are not the same, but the emotional experience they bring is not very different. Similarly, the author's anxiety over such a major business decision is probably inevitable.
This transaction, a $500 million acquisition of shares in a state-owned bank, was completed through rounds of negotiations and games. This explains why finance has been one of the hottest fields of study over the past three to thirty years. The finance industry is closest to money; its daily work revolves around the flow and management of capital. A heightened sensitivity to money increases the likelihood of making money. There's a saying: "With the right method, making money is as easy as breathing." This may sound like a cliché, but on closer inspection, it's quite reasonable. Looking back at the education I received in school and at home, it often emphasized linear growth — earning 10 dollars today, 10 dollars tomorrow, totaling 1,000 dollars in 100 days. However, the returns for those steering big ships in real life are often not in linearly growing patterns but are more likely exponential. Therefore, whether understanding finance or life, we should learn from those who are deemed successful in worldly terms. The more deeply we are impressed by failures, the harder it will be to escape the inertia of failure in the future.
Today, human society has evolved from a feudal to a capitalist society, with the most significant change being the shift from a bloodline-based society to one centered on capital. Undoubtedly, this transition has created many problems, such as rampant materialism, moral degradation, and the dehumanization of people into machines. However, the advantages of this social structure are also evident: it can create a powerful material civilization. It is precisely this material civilization that enabled the capitalist society to triumph over the feudal society. The "Tao Te Ching" states, "Heaven and Earth are ruthless, treating all things as straw dogs." The whole world is like a machine, and the creator of this machine does not care about how its components operate; what he truly cares about is the final outcome.
During NewBridge Capital's negotiation to acquire a 20% stake in Shenzhen Development Bank, the foreign merchants offered capital while desiring enormous returns. This return was precisely what China's unique financial environment could provide. Meanwhile, Shenzhen Development Bank provided a potential opportunity for huge returns and sought the cash needed to save the bank. In essence, everything can be reduced to two questions: What can I offer? What do I want in return?
The author essentially describes his life experience. He grew up in China's Gobi Desert, where his teenage years were relatively tough. However, with the launch of the reform and opening up in the 1980s, he had the opportunity to go to the United States. There, he completed his studies and graduated with a Ph.D., ultimately staying on to teach, which drastically altered his life's trajectory. Later, in the 1990s, a headhunter approached him with an opportunity that took him from academia to the industry, transitioning from investment banking to private equity. The NewBridge Capital acquisition of shares in Shenzhen Development Bank occurred during this period. We often say, "Choice is more important than effort." But in reality, if we do not do our current job well, new possibilities will not emerge. Just as we cannot talk about "choices" when we only have one or even no offer, we can only consider which to choose when we have three offers in hand.
The acquisition happened in 2002, shortly after China joined the WTO. Discussing this event, one cannot ignore China's rapid economic development at that time. This economic boom is naturally closely related to the reform and opening-up policies led by Deng Xiaoping. One could say that his policy drove China's reform and opening up; from the results, his influence was profound, with more advantages than disadvantages. He once said, "Let some people get rich first," which was indeed achieved under his leadership. As for "the rich leading the poor to prosperity," this is an issue that could not be completely solved during his lifetime. Sometimes, I can't help but reflect: why did the previous generation miss such a golden period for development during the reform and opening up? Why did they fail to seize the opportunities of that era? If we put ourselves in their shoes, we might realize that we may also be missing many opportunities in our own time. Since graduating from high school, leaving home, and living independently, how many opportunities of the era have I missed? People always explain the past with the result: seeing a country's good development, we find many reasons to prove its success. But when we look back on these events, can we foresee the future and seize these opportunities?
February 1, 2025
2025-02-01 Update：
最近又看了一遍港版，同样的里面细节非常多，一家外资能获得中国银行的控股权是前无古人，又成功退出赚了14倍多可以说后无来者吧。
2023-02-26：
新桥集团收购、改造深圳发展银行并最后卖给平安的故事，同样非常精彩，单总非常会讲故事，《走出戈壁》看来也要安排起来了。
最近又看了一遍港版，同样的里面细节非常多，一家外资能获得中国银行的控股权是前无古人，又成功退出赚了14倍多可以说后无来者吧。
2023-02-26：
新桥集团收购、改造深圳发展银行并最后卖给平安的故事，同样非常精彩，单总非常会讲故事，《走出戈壁》看来也要安排起来了。
August 18, 2024
This book presents the process of Shan and Newbridge capital (a private equity fund 私募股权基金，也就是通过投资股权为其limited partner LP 牟利) 1) taking over the Shenzhen Development Bank (SDB, listed on Shenzhen stock exchange as 000001), 2) the main policies and decisions that transformed the ill-fed bank, and 3) the negotiation process with numerous other firms as Newbridge capital exit investment and cash-out.
This book clarifies my understanding of financial instruments: they are called instruments because they are tools to make a deal happen. For example, a specific kind of financial instrument called convertible bond is used during Shan's exit. The fact that this instrument allows its holder to convert it to either cash or the company's stock means that the holder can earn a bottom-line of the value of that cash and potentially benefit from any appreciation of the stock's price higher than the cash. In effect, this hedges against the risk of stock prices' fluctuation and allow the holder to gain benefit. Thus, this instrument is used to balance risk and return for both ends of the deal.
For 2):
1. Changing a system's structure may have a significant effect. In SDB, it employs a structure where the branch manager can only initiate a loan proposal, and the credit officer can only approve loan proposals. This significantly reduces the loans made due to personal relationships (as they need credit officer's approval and credit officer reports to the central credit office rather than the branch manager-balance of power there).
2. Incentive-giving employees a percentage of bonus based on how much non-performing loan they collected is a good way to motivate them.
For 3):
1.
This book clarifies my understanding of financial instruments: they are called instruments because they are tools to make a deal happen. For example, a specific kind of financial instrument called convertible bond is used during Shan's exit. The fact that this instrument allows its holder to convert it to either cash or the company's stock means that the holder can earn a bottom-line of the value of that cash and potentially benefit from any appreciation of the stock's price higher than the cash. In effect, this hedges against the risk of stock prices' fluctuation and allow the holder to gain benefit. Thus, this instrument is used to balance risk and return for both ends of the deal.
For 2):
1. Changing a system's structure may have a significant effect. In SDB, it employs a structure where the branch manager can only initiate a loan proposal, and the credit officer can only approve loan proposals. This significantly reduces the loans made due to personal relationships (as they need credit officer's approval and credit officer reports to the central credit office rather than the branch manager-balance of power there).
2. Incentive-giving employees a percentage of bonus based on how much non-performing loan they collected is a good way to motivate them.
For 3):
1.
January 28, 2025
Weijian Shan's book, *Money Machine: A Trailblazing American Venture in China*, listened to on Libby during long bus trip from Indonesia to Malaysia, if if is not for this, I don’t even think that myself would have the full concentration to comprehend the story told.
It chronicles the unprecedented acquisition of Shenzhen Development Bank by a U.S. private equity firm in the early 2000s. The rather complex part is about negotiating stocks with convertible bonds and also the price setting.
The regulation to issue convertible bonds, although not said in details, seems to have freaked out the sell side. When swap is included, things become more complex. SDB is also traded in two different exchange (Shenzhen and Hongkong), both had slightly different price and liquidity.
It details the complex negotiations, cultural clashes, and challenges faced during this transformative deal, which turned a struggling bank into a profitable entity. Shan provides insights into China's evolving financial landscape and the potential for private equity to create value in such environments, making this book a nice to read for finance professionals and enthusiasts alike.
It chronicles the unprecedented acquisition of Shenzhen Development Bank by a U.S. private equity firm in the early 2000s. The rather complex part is about negotiating stocks with convertible bonds and also the price setting.
The regulation to issue convertible bonds, although not said in details, seems to have freaked out the sell side. When swap is included, things become more complex. SDB is also traded in two different exchange (Shenzhen and Hongkong), both had slightly different price and liquidity.
It details the complex negotiations, cultural clashes, and challenges faced during this transformative deal, which turned a struggling bank into a profitable entity. Shan provides insights into China's evolving financial landscape and the potential for private equity to create value in such environments, making this book a nice to read for finance professionals and enthusiasts alike.
June 21, 2023
In line with his last book, Weijian recounts his part in his firm (at the time) New Bridge Capital's acquisition of Shenzhen Development Bank from the Chinese government, the effort it took to complete the deal and the subsequent sale 5 years later to PAIG Group. This was a landmark deal of its time, Weijian recounts what it was like to be the first American firm to take over a Chinese financial firm and doing business with the Chinese government. Weijian also goes over the moment he knew it was time to leave TPG and starting his firm PAG Group.
Given that Weijian uses his notes from his journal to compose this book, you do get a sense of the frustration of the ebb and flow of the deal. While I did enjoy this one, I'll say this is for a specific taste and wouldn't recommend it for everyone. If youre interested in the world of high finance and the minute details of how private equity deals occur from start to sale, youll like this.
Given that Weijian uses his notes from his journal to compose this book, you do get a sense of the frustration of the ebb and flow of the deal. While I did enjoy this one, I'll say this is for a specific taste and wouldn't recommend it for everyone. If youre interested in the world of high finance and the minute details of how private equity deals occur from start to sale, youll like this.
February 9, 2024
Another great book by weijian.
Pretty much as the abstract describes it. Similar to the other book by him about Korea First Bank, he recounts the negotiations that lead up to the purchase of Shenzhen Development Bank(SDB). The purchase was first of its kind as a foreign buyer of a mainland Chinese bank. A lot of parallels to KFB and also he shares how the lessons learnt from KFB can be applied to the SDB deal. However, there are also a lot of differences namely that dealing with the Chinese gov is different than dealing with Korean one. The deal had to go through different levels of gov starting from buying the shares from local SZ gov, then getting approval all the way up to the prime minister . Overall , another very interesting and insightful book about how deals work and some more context about banking in China at the time.
Pretty much as the abstract describes it. Similar to the other book by him about Korea First Bank, he recounts the negotiations that lead up to the purchase of Shenzhen Development Bank(SDB). The purchase was first of its kind as a foreign buyer of a mainland Chinese bank. A lot of parallels to KFB and also he shares how the lessons learnt from KFB can be applied to the SDB deal. However, there are also a lot of differences namely that dealing with the Chinese gov is different than dealing with Korean one. The deal had to go through different levels of gov starting from buying the shares from local SZ gov, then getting approval all the way up to the prime minister . Overall , another very interesting and insightful book about how deals work and some more context about banking in China at the time.
September 2, 2024
This was such a great business narrative that was both engrossing and educational! As I’m entering my nonfiction era (really just trying to read genres that I normally wouldn’t chose firsthand), this was on the JPMorgan reading list a few years ago, and the author is an ex JPMorgan investment banker. However, it followed the chronicle of his work in private equity involving the first Chinese bank to be owned by a foreign investor. It was a successful turnaround of a failing bank to the point where with Newbridge Capital’s expertise in Asian financial institutions, the annualized net profit growth for Shenzhen Development Bank was ~73% from 2004-2010. Highly recommend if you’re interested in business, private equity, history, or underdog-esque type nonfiction stories.
March 22, 2025
Amazing first person view journey from a highly capable & competent person in recognition of a good deal, reading the room, overcoming difficulties, emotional resilience, capability to grind, with flawless execution. Only here with one exception that I was thinking he could've stay in there with PAIG & grow with it just like how a good old growth investor would do & then their exit would be sorted for life.
May 29, 2023
Fantastic account of a trailblazing PE deal indeed! I think this gives a lot of depth and nuance to the work of PE investors. A must read for every young person aspiring to career in the investment world.
July 13, 2023
One of the best business books I’ve ever read! I particularly enjoyed learning more about the Chinese financial system and the required hurdles to jump through with this one of a kind deal. I highly recommend this book!
June 11, 2025
If you are interested in the machinations of the finance world, this book is for you; if you wonder what he/the team did to improve the operations of the bank and improve the P&L, you will be very disappointed.
April 19, 2023
Really exciting book. Appreciated it as an ex banker and PE professional. It’s like working on a top live deal in more exciting times
May 12, 2024
Signed copy from the author. Acquaintance in book.
Negotiation with govt and turning around a bank is no easy job.
Negotiation with govt and turning around a bank is no easy job.
December 5, 2024
Not as entertaining or accessible as your average business story book, but I enjoyed hearing about the deal process and the different roadblocks they ran into while acquiring the bank.
May 5, 2024
Spent about a week to finish the book. For those who work or have worked in investment banking and/or private equity, the technical aspect of this book is okay-ish, not greatly satisfying. Understandable since the author, being extremely knowledgeable, caters to a bigger audience.
It is fascinating to read up on where Ping A Bank, one of the largest in China, actually came from. It was also fascinating to see how prominent Chinese political figures like Zhu RongJi had participated in an American private equity fund's deal-making in Chinese Mainland. That would be unimaginable if a book like this wasn't written since private equity or investment banking deals are usually guarded secrets.
The author has written 3 books so far and I have read all of them. I would really appreciate if the author gave out more technical details and how he thought things through, rather than in a superficial fashion. That would be truly enlightening. This is more of a leisure .
It is fascinating to read up on where Ping A Bank, one of the largest in China, actually came from. It was also fascinating to see how prominent Chinese political figures like Zhu RongJi had participated in an American private equity fund's deal-making in Chinese Mainland. That would be unimaginable if a book like this wasn't written since private equity or investment banking deals are usually guarded secrets.
The author has written 3 books so far and I have read all of them. I would really appreciate if the author gave out more technical details and how he thought things through, rather than in a superficial fashion. That would be truly enlightening. This is more of a leisure .
February 16, 2023
a great story
I enjoyed reading the book. The story was written against a detailed macroeconomic backdrop: high GDP growth, banking sector reform and a favourable regulatory environment. Well done.
I enjoyed reading the book. The story was written against a detailed macroeconomic backdrop: high GDP growth, banking sector reform and a favourable regulatory environment. Well done.
September 10, 2023
Vivid recollection of origination, transformation, and exit of the SDB deal. Eventful stories of perseverance and creative deal structuring during highly uncertain times over Chinese bank reforms and global financial crisis.
December 16, 2023
Not as difficult a deal as in “Money Games” so we don’t get as much juicy inside info about the negotiation process: the book is more about the operational challenges of turning the bank around.
January 17, 2024
very helpful read
Learned a lot from this book. Always require a lot of hard work to get a deal done. Nothing is easy.
Learned a lot from this book. Always require a lot of hard work to get a deal done. Nothing is easy.
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