CDFH creates next global brands in China
Discovery Reports
It takes a catalyst to bring up the most compelling prospects in China as the next global brands. Helping build Taiwan's business pillars for more than 50 years, China Development Financial Holdings (CDFH) combines expertise and networks to transform possibilities into success stories.
"We are an integrated solutions provider at every stage of the business development of companies. Our impact can be seen on our clients' balance sheets," says Paul Yang, president and CEO of CDFH and China Development Industrial Bank (CDIB).
CDFH is certainly familiar with the mainland. It is the parent company of CDIB and Grand Cathay Securities Corporation (Grand Cathay). Through equity investments and equity-linked financing across a broad range of industries, CDFH has boardroom seats in 235 Taiwanese companies that have become well-positioned players on the mainland. CDFH is taking the next logical step: incubate more global brands among the mainland's promising regional players.
It is a role CDIB has played in Taiwan since 1959. Designed by the Taiwanese government to foster economic development in the private sector, CDIB functioned as Taiwan's primary private equity investor in industrial ventures. Its financing traces Taiwan's industrialisation - from light industries in the 1960s, heavy industries in the 1970s, electronics and computers in the 1980s, semiconductors and communications in the 1990s, to optoelectronics, biotechnology, alternative energy and consumer products and services. Indeed, it is the foundation of Taiwan's 60 per cent share of the mainland's re-exports.
As one of only two industrial banks in Taiwan licensed to provide equity-linked financing, CDIB is Taiwan's largest venture capitalist. With more than 600 corporate clients spread across 100 industries, CDIB's accumulated expertise is unmatched in incubating start-ups and steering them towards profitability. Grand Cathay was incorporated into the business in 2001 to help clients sustain business growth.
"With the marriage of CDIB and Grand Cathay, we became the lifetime partners of our customers," Yang says. "Through CDIB, we are able to participate when the companies are still very young. Our middle market growth investment portfolio helps more mature companies, or those approaching their hockey stick stage, to really develop. And then with Grand Cathay, we can provide the investment banking services as they get ready to participate in the capital markets."