Due Diligence on a Chinese Partner

A commodities company wanted to know more information on a potential partner company in China. It wanted to know: Overview of the Chinese commodities trading market and trading practices. What was the financial and trading history of the Chinese company? Did the company have the connections and existing contracts it claimed? Were there any regulatory or reputational issues facing the company?

The research and findings were delivered to the client as a: China Market profile of the Commodities Trading market Company profile including: Company overview Financials Key personnel Company reputation Regulatory issues

We conducted thorough investigation through: Face-to-face research (conducted by Chinese agent): 10 Interviews with the Chinese company’s employees, ex employees, customers and competitors. Investigation of regulatory filings of the company (by a Chinese Agent) and the history of the leading sponsors and executives. Checking of social media and newspaper comment on the company. Our Analysts used the information gathered from the above sources, analyzed the data and offered a two-format solution to the client.

Based on the study the client was able to establish the following about the Chinese company. It did indeed have the contacts and connections it claimed. The company had long and steady history of profitable trading. While there had been some complaints against the company there were no law suits. On the basis of this the commodities trader was able to confidently go into partnership.