London, 1 September 2010 – Chinese companies hungry for expansion and investment overseas face unfamiliar risk landscapes, requiring a deep understanding of the local environment, according to a report published today by Marsh.

The latest edition of The Marsh Directors’ Series, a regular publication from Marsh in Asia, features a special focus on Chinese outbound investment, discussing the risks and opportunities Chinese companies encounter when acquiring, investing and listing outside their home market.

The many risk issues that these acquisitive companies face, especially in the US and Europe, include:

·         More stringent employee benefit and workers’ compensation regulations

·         Strict environmental liability laws

·         Different statutory reporting requirements for listed companies

·         Class action litigation for IPO and prospectus-related liability

“The global downturn has presented well-capitalised Chinese companies with many attractive M&A opportunities,” said Mark Dawson, Leader of Asia Global Client Services (AGCS) at Marsh in Europe, the Middle East and Africa.

“However, Chinese companies face a completely different risk landscape from what they are used to at home. Issues such as more stringent regulations and cultural integration require these companies to pay particular attention to their overseas risk management and insurance programmes. Companies planning to list or already listed offshore have the added complexity of IPO liability and statutory reporting requirements.”

This edition of The Marsh Directors’ Series also includes a story on managing risk in a growth environment. As Asia continues to power ahead with strong GDP figures, companies should adjust their risk management and insurance programmes accordingly.

To access the report, please visit: http://www.insurancemarketreport.com/dsengq3q4/index.htm