If the company decides to go public, these investors (Venture Capitalists) can use the opportunity to sell their stake to institutional or retail investors at a premium. They (VC) may like to go for convertible preference share as form of equity financing, and as the firm grows and reports profit consistently, it may consider going public. They provide the company with much needed capital to sustain business in exchange of shares or ownership in the company.Ī start-up might need various rounds of equity financing to meet liquidity needs. Venture Capital (VC) financing is a method of raising money via high net worth individuals who are looking at diverse investment opportunities. One of the most sought after methods of raising cash, apart from public issue, is via Venture Capital. The portion of the stake will depend on the promoter's ownership in the company. The people who buy shares are referred to as shareholders of the company because they have received ownership interest in the company.ĭescription: Equity financing is a method of raising funds to meet liquidity needs of an organisation by selling a company's stock in exchange for cash. Learn more about Financial services in China, Budget Planning & Control, and VAT Refund in China, or Get in touch for more information and practical solutions.Definition: Equity finance is a method of raising fresh capital by selling shares of the company to public, institutional investors, or financial institutions.
It’s an absolute must in order to do business in China. Managing the financials of your operation in China with maximum efficiency and transparency is not a luxury. Since the 19 th century, millions of these paper notes have been burnt every year in celebration of the Chinese New Year festival. One of these offerings is burning “Hell banknotes”, a tribute to the King of Hell that is meant to ensure that the spirits are treated well in the afterlife. In Chinese tradition, it is customary to make offerings in honor of one’s ancestors. Forgers were punished by the death penalty, while the informer received a reward in addition to the property of the criminal.ġ0. They hid secret marks on the bills and enforced strict regulations. The Chinese invented a method to detect forgeries. The West started printing banknotes centuries later.ĩ. When he returned to Italy, people did not believe his stories about the paper money in China. He described this amazing innovation in his journey records: “All these pieces of paper are issued with as much solemnity and authority as if they were of pure gold or silver”. When Marco Polo arrived in China in the 13 th century, he was impressed by the use of paper money. The first time paper money was used was in China in the 9 th century.Ĭhinese paper money from the 9 th centuryĨ. The Chinese believed that currency had to circulate in the social structure as blood flows in the human body.ħ. In other words, the purpose of the Chinese currency was not to store value, hence why it remained low in value for centuries. The ancient Chinese currency was a means of exchange and a measure of value alone. Our services assist international companies in the Chinese market. Due to the low value of a single coin, it was customary to form a string of 1000 coins into a purchasing unit.
#HELL BANK NOTE VALUE SERIES#
The first occurrence of inflation in China was in the 2 nd century BC, due to the massive recruitment of workers building the Great Wall, and a series of wars.ĥ. From then on, a difference between the face value and the actual value of the metal became common.Ĥ.
However, from the 2 nd century BC, the actual content of the coin was reduced, and the central hole was enlarged. Originally, the value of the coin was equal to its weight. The holed disc remained the basic shape of Chinese coins until the 20 th century.ģ. The coinage in China then underwent a transition in means of payment, and a new shape of coins was cast in the form of a round disc with a hole in the center. The first round coin appeared during the 5-4 th century BC.
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