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3 posts from January 2009

Morgan Stanley’s Top Property Deal-Maker in Shanghai Resigned

According to Reuters, Morgan Stanley's top property deal maker in China, Garth Peterson. Peterson, a Shanghai-based managing director of Morgan Stanley Real Estate, who headed its China operations, resigned last week and his departure has been announced internally to property investment-related staff in Asia, the sources said. A Morgan Stanley spokesman confirmed that Peterson was no longer with the bank. Morgan Stanley Real Estate set up its Shanghai office responsible for China deals in 2006. The resignation of Perterson, a top deal maker of Morgan Stanley’s China real estate business, either sends us a signal that Morgan Stanley is concerned about Asia’s real estate market or that the headquarters, struggling with its balance sheet, is try to raise some cash by selling properties in Asia. Since 1991, Mogan Stanley has set up 6 REITs. The funds that are invested in international real estate are MSREF III International, MSREF IV International and MSREF V. In 2006, MSREF V raised $4.2 billion globally, 55% of which invested in Asian real estate markets including Japan and China. Morgan Stanley is invested in both residential and commercial real estate projects in China.In 2004, it invested $75 million in a high-end residential building Jinlin. In... Read more →


What is Holding China Back from Going Global?

Former trade negotiator in China Long Yongtu pointed out a few reasons that Chinese companies have not gone global in a faster pace and larger scale. 1. Chinese companies need to adapt to an environment that places more importance in laws and rules than just guanxi 2. Chinese companies need to improve transparency in business operations. 3. Chinese companies shall change their mentality by opening up and learning to integrate with people of different cultures and languages, being less cliquish. 4. Greenfield investment may be too difficult for Chinese companies in a new overseas market; merger and acquisition could be easier -- through M&A to acquire talents, management and brand. View the video for more details: Source: McKinsey Quarterly Read more →


The Costs and Benefits of Solar PV Power

In January 2008, Severin Borenstein, Director of University of California at Berkeley Energy Institute, published a paper to analyze the costs and benefits of electricity generated by Solar PV power. I would like to include the abstract of this research paper. His conclusion is that “this cost-benefit gap is much greater than plausible estimates of the value of greenhouse gas reduction from solar PV generation.” Abstract The high cost of power from solar photovoltaic (PV) panels has been a major deterrent to the technology’s market penetration. Proponents have argued, however, that typical analysis overlook many of the benefits of solar PV. Some of those benefits are in the realm of environmental and security externalities, but others occur within the electricity markets. In this paper, I attempt to do a more complete market valuation of solar PV. I incorporate the fact that power from solar PV panels is generated disproportionately at times when electricity is most valuable due to high demand and increased line losses. I find that the degree to which the timing of solar PV production enhances its value depends very much on the extent to which wholesale prices peak with demand, which in turn depends on the proportion... Read more →