Localizing Global Finance: The Rise of Western-Style Private Equity in China (Palgrave Pivot)

Localizing Global Finance illustrates that private equity has become a more significant component of China's economy based on a pattern of new domestic elites importing and implementing a largely Western financial model. Localizing Global Finance presents the first in-depth analysis of the private equity industry in China as a test case of how extensively new financial processes have penetrated emerging markets. Significant elements of the Western private equity model are now practiced in China by domestic firms, which have outpaced their foreign rivals. The author's analysis employs a combination of large-scale data on private equity fundraising and investments, as well as case studies of commercial success and failure. Given that domestic structures are more open to change than is often understood, the findings set forth here raise questions about broad theoretical models of resistance to global finance and call for greater study of middle grounds in the political economy of China and other emerging markets "Localizing Global Finance presents the first in-depth analysis of the private equity industry in China as a test case of how extensively new financial processes have penetrated emerging markets. Significant elements of the Western private equity model are now practiced in China by domestic firms, which have outpaced their foreign rivals. Private equity has been incorporated in China through an inside-out process of domestic actors learning the model abroad and applying it domestically. Chinese returnees have allied with politically connected princelings to form a key power bloc in this field. The analysis employs a combination of large-scale data on private equity fundraising and investments, as well as case studies of commercial success and failure. Given that domestic structures are more open to change than is often understood, the analysis raises questions about broad theoretical models of resistance to global finance and calls for greater study of middle grounds in the political economy of China and other emerging markets" Front Matter....Pages i-vi Introduction....Pages 1-8 A Middle Ground between Global and Local Levels of Analysis....Pages 9-15 Global Finance and Localization: Four Possible Outcomes....Pages 16-23 Where to Study Domestic Actors and New Finance....Pages 24-33 Replica Localization and Private Equity in China....Pages 34-53 Elite Formations and Cases of Success and Failure....Pages 54-70 Revisiting the Literature and the Significance of the Findings....Pages 71-77 Conclusion....Pages 78-88 Back Matter....Pages 89-105