Hunter Wise's Dan McClory Calls Corporate Governance 'Single Most Important Success Factor for Sino Small Caps'

IRVINE, Calif. and TIANJIN, China, June 15 /PRNewswire/ -- Hunter Wise Financial Group Managing Director Dan McClory, speaking at the 3rd China International Private Equity Forum (CIPEF) in Tianjin, China, cited inadequate corporate governance as the biggest contributor to the 2008 meltdown of China small cap stocks trading in the U.S.

"The single worst-performing segment of the U.S. stock market last year was China Small Caps, down 64% while Nasdaq fell 42%," said Mr. McClory to the large international audience in Tianjin. "Their failure wasn't due to impaired assets or missed profits like their U.S. counterparts, it was a crisis of confidence and questionable corporate governance practices of these Chinese issuers that dropped their values like a rock," the Hunter Wise executive added. Since March 2009, however, the Halter China Index of all Chinese stocks trading on a major U.S. market is up 62 percent.

"There are some unprecedented investing opportunities for private equity groups in Asia to tap into the China Small Cap market," said Mr. McClory, "especially since the 'usual suspect' U.S.-based hedge funds who poured money into the market are now illiquid, battling redemptions from their limited partners, and unable to redeploy capital."

McClory appeared at the CIPEF event for the second straight year and spoke on a panel sponsored by the Association for Corporate Growth (ACG) titled, "Corporate Governance & Private Equity: The Value of Transparency." The 3rd China International Private Equity Forum was co-hosted by the Tianjin Municipal People's Government, the All-China Federation of Industry & Commerce and ACG.

CIPEF attracted over 4,000 enterprises and institutions from over 20 countries and in prior years has raised funds amounting to RMB 30 billion. CIPEF has been recognized as one of the world's largest and the most influential annual events focusing on private equity investment in the People's Republic of China. It is estimated that over 5,000 guests from 500 domestic and international venture capital and private equity firms, 300 intermediaries, and 1,500 leading PRC companies attended this year's conference.

Hunter Wise Financial Group, LLC provides corporate finance services to Chinese companies seeking growth capital. It is a specialized investment banking firm providing the highest quality institutional financing, merger, acquisition, investment and advisory services for middle market public and privately-held companies.

CONTACT:

Hunter Wise Financial Group, LLC
Dan McClory
Managing Director
(949)732-4102
dmcclory@hunterwise.com


CONTACT:

E & E Communications
Paul Knopick
(949) 707-5365
pknopick@eandecommunications.com