ABSTRACT
Since 1982, China has emerged as a major player in the international capital markets, and the pace and magnitude of its involvement virtually exploded during the heady days of Asian finance in the five years leading up to mid-1997. The Asian financial crisis that began in summer 1997 substantially cooled international investor capital interest in new "emerging market" investments, including those in Chinese equity and debt. During 1980s, China's approach to international capital markets was principally as a borrower. China International Trust and Investment Company conducted China's first international bond issue in 1982 in Japan. In 1995, 1996, and 1997 Hong Kong's capital market was tapped for both equity and debt capital by Hong Kong–registered companies that are controlled by Chinese cities, government departments, or state agencies. These "Red chips" grew in number and importance during 1996 and 1997, when the Hong Kong–based "window" companies of Chinese municipalities and provinces made initial public offerings in Hong Kong market.
