Why would China want to Internationalize the RMB? 

What are the costs and obstacles to RMB Internationalization? 

How does RMB Internationalization relate to China's economic transformation? 

Week 6 Group Case Hony, CIFA, and Zoomlion: Creating Value and Strategic Choices in a Dynamic Market, by Josh Lerner and Yiwen Jin, HBS 9-811-032 

• What are the risks of pursuing the CIFA acquisition? 

What are the potential benefits? 

• How is investing in Zoomlion's acquisition of CIFA different from investing in Zoomlion itself? Does this pose fewer or more risks for Hony? 

• A payment package needs to be designed for PE to exit the JV after the deal. The design needs to consider not only the synergy of the deal on the Zoomlion side but also the synergy on the CIFA side. Zoomlion designed a put-call feature for the payment. Do you think it is a good design? Why do think Zoomlion designed in such a way? 

• Among Zoomlion, Hoye, Goldman, and Mandarin, who benefited the most from the put-call feature? Who suffered? 

• What is the estimated return of CIFA deal for Hony? Assume that a) Hony will exit in 5 years; b) Hony will exercise the option at the time; c) CIFA’s entry trailing EV/EBITDA multiple was 10, and Zoomlion would be trading at an average EV/EBITDA multiple of 20 at the time of exit.