Will be given Essay Example | Topics and Well Written Essays - 250 words

Will be given - Essay Example Many questions remain unanswered in this mysterious collapse of the financial market and slump it the Kaisa shares overnight. Critical evaluation of this article offers an insight into the concepts that support sustainable economic growth and financial security of the market. China is noted as having ambiguous legal structures that fail to disclose the reality of existing market trend to foreign investors. Besides, cases of corruption and unclear source of the wealth of Guo Yingcheng explains the sudden collapse of this firm. There are several lessons that are learnt from this scenario. For a multinational like Kaisa which deals in such capital intensive investment, integrity and reliability of its founder is paramount. In the case of Kaisa and the financial curse that befell it, a combination of the government weak policies on corruption and the firm’s internal legal and ethical structures contributed to the tragedy. The concept of overcapitalization against diminishing demand can equally be attributed to the claims against Kaisa as explored in this article. It is therefore important to undertake m ultidimensional approach while establishing investment