Xi (Chinese :系) is a form of business organization in China where a group of companies are controlled by a private equity fund, forming an investment group.
The term can be translated as business group or a conglomerate.However there is a connotation in the term of bending the rules since the companies in the group while tracing to an owner are not affiliated as a neatly organized entity. In a dissertation on the subject a Xiamen University student described the arrangement as follows:
"Very often strings of dysfunctional subsidiaries or intricately affiliated companies in the form “business groups” perform no substantial business activities other than acting merely as financial vehicles for one another. Spin-offs, shell-structures, holding companies are created at rapid rate..."
Comparison can be made to another, more formal kind of network based group structure in corporate China, the qiyejituan (simplified Chinese :企业集团; traditional Chinese :企業集團; pinyin :Qǐ yè jí tuán) in which the group of companies is registered as affiliated firms of a parent firm.
A keiretsu is a set of companies with interlocking business relationships and shareholdings. In the legal sense, it is a type of informal business group that are loosely organized alliances within the social world of Japan's business community. The keiretsu maintained dominance over the Japanese economy for the second half of the 20th century, and, to a lesser extent, continues to do so in the early 21st century.
In corporate finance, mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities. As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position.
A conglomerate is a multi-industry company – i.e., a combination of multiple business entities operating in entirely different industries under one corporate group, usually involving a parent company and many subsidiaries. Conglomerates are often large and multinational.
Zaibatsu is a Japanese term referring to industrial and financial vertically integrated business conglomerates in the Empire of Japan, whose influence and size allowed control over significant parts of the Japanese economy from the Meiji period until the end of World War II. A zaibatsu's general structure included a family owned holding company on top, and a bank which financed the other, mostly industrial subsidiaries within them. Although the zaibatsu played an important role in the Japanese economy from the 1860s to 1945, they increased in number and importance following the Russo-Japanese War of 1904–1905, World War I and Japan's subsequent attempt to conquer East Asia during the inter-war period and World War II. After World War II they were dissolved by the Allied occupation forces and succeeded by the keiretsu.
A chaebol is a large industrial conglomerate that is run and controlled by an owner or family in South Korea. A chaebol often consists of many diversified affiliates, controlled by an owner whose power over the group often exceeds legal authority. The first known use in an English text was in 1972. Several dozen large South Korean family-controlled corporate groups fall under this definition.
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises.
Cheung Kong (Holdings) Limited, was a multinational conglomerate, based in Hong Kong. It was one of Hong Kong's leading multi-national conglomerates. The company merged with its subsidiary Hutchison Whampoa on 3 June 2015, as part of a major reorganisation, to become part of CK Hutchison Holdings.
A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly emerging markets; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. Work by Reuer and Leiblein challenged the claim that joint ventures minimize downside risk.
Ping An Insurance known also as Ping An of China, full name Ping An Insurance (Group) Company of China, Ltd. is a Chinese holding conglomerate whose subsidiaries mainly deal with insurance, banking, and financial services. The company was founded in 1988 and is headquartered in Shenzhen. "Ping An" literally means "safe and well".
The engine of Japanese economic growth has been private initiative and enterprise, together with strong support and guidance from the government and from labor. The most numerous enterprises were single proprietorships, of which there were more than 4 million in the late 1980s. The dominant form of organization; however, is the Corporation. In 1988 some 2 million corporations employed more than 30 million workers, or nearly half of the total labor force of 60.1 million people. Corporations range from large to small, but the favored type of organization is the joint-stock company, with directors, auditors, and yearly stockholders' meetings.
A corporate group or group of companies is a collection of parent and subsidiary corporations that function as a single economic entity through a common source of control. The concept of a group is frequently used in tax law, accounting and company law to attribute the rights and duties of one member of the group to another or the whole. If the corporations are engaged in entirely different businesses, the group is called a conglomerate. The forming of corporate groups usually involves consolidation via mergers and acquisitions, although the group concept focuses on the instances in which the merged and acquired corporate entities remain in existence rather than the instances in which they are dissolved by the parent. The group may be owned by a holding company which may have no actual operations.
A private-equity firm is an investment management company that provides financial backing and makes investments in the private equity of startup or operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, each firm will raise funds that will be invested in accordance with one or more specific investment strategies.
Sinochem Corporation is a Chinese state-owned multinational conglomerate primarily engaged in the production and trading of chemicals and fertilizer and exploration and production of oil for civilian and military purposes. Its majority owned fertilizer subsidiary Sinofert is involved throughout the chain from production of the product and procurement on international markets to distribution and retail.
Civilian-run enterprise is a type of company or enterprise to describe a non-state-owned enterprise in the People's Republic of China. A privately held company is a type of civilian-run enterprise. However, there is no proper legal definition of "civilian-run enterprise" in China. It is considered to be a special term in the Economy of China. The translation of the term "Minqi" was difficult, as stated by Ye Dong, a Chinese businessman during an interview by the Chinese-language version of the Financial Times.
China Shipping Group Company, Limited, formerly China Shipping (Group) Company, is a former Chinese state-owned shipping conglomerate. It is now one of the intermediate holding company for another Chinese state-owned conglomerate, China COSCO Shipping, which is formed by a merger of China Ocean Shipping Company (COSCO) and China Shipping Group by the creation of a new parent company for the two conglomerates.
Multi-divisional form refers to an organizational structure by which the firm is separated into several semi autonomous units which are guided and controlled by (financial) targets from the center.
China National Machinery Industry Corporation is a Chinese conglomerate with businesses in tool making, construction equipment, agricultural equipment, and infrastructure construction. In two particular areas of construction engineering, the company is among the top in terms of revenue from international projects. Based on 2013 rankings compiled by the Engineering News-Record, the company is the third largest contractor of power projects and 8th largest contractor of industrial projects.
China Hi-Tech Group Corporation, Ltd. (CHTC) is a Chinese conglomerate company. The company is owned by the Chinese Central Government via State-owned Assets Supervision and Administration Commission of the State Council (SASAC). The company main focus is on the textile industry. In June 2017, CHTC became a wholly owned subsidiary of Sinomach, another SASAC company, through a restructuring, as part of a plan to reduce the number of SASAC directly-controlled companies.
Jiangling Motors Corporation Group Co., Ltd. (JMCG) is a Chinese state-owned holding mostly operating in the automotive industry. It was established in 1947 and is headquartered in Nanchang, Jiangxi.