The company was one of the largest producers of electricity in the world and the leading power company in China. The demand for power in China was increasing faster than could be matched. HPI was developed and expanding in an attempt to meet this demand that has no signs of diminishing. There were many things that made it a potentially attractive company, however there are several risks due to political and regulatory uncertainty. China's central government completely controlled the economy in the past, however, they opened up somewhat and moved toward a limited market economy. They experienced booming growth that contributed to out of control inflation. The government responded by increased price control taking power back that reduced the economy and inflation