| Abstract | The increasing trend toward diversification, especially into areas in which companies have little or no experience, is one that China experts tip as a possible mis-step in the evolution of Chinese listed corporations. According to Lawrence Ang, SBCI's director of China research, the reason many of the corporations diversify is to sustain earnings growth in the face of wilting profits from core businesses. In theory, he says, this should not be a bad thing. However, when translated into practice in the PRC, things can quickly take a sharp turn into the great unknown. |
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