...but this is nothing to do with the general financial market...
On the other hand, don't you think that financiers outside of China would have been willing to participate in this deal, if they were given the chance?
Believe or not, it's sort of same old same old, just different industry this time around.
The history might just repeat itself.
How many people believe that HIK selling cameras below production cost?
I don't know why this is even news. China Development Bank is the default bank to facilitate exports to most of the semi-government owned enterprises for years. Hikvision has been doing business with them for more than a decade. For example, many foreign dealer/distributor reselling Hikvision products expect them to provide terms or straight financing. Due to the strong capital/currency controls instituted by the Chinese government, even if Hikvision has a strong balance sheet of its own, it is not allowed to extend credit without first going through a government controlled bank. In this case, the China Development Bank. All foreign currency lending, remittance and settlements are done through some shape or form through this process. In this case, the bank act as a central banker to the exporters.
Needless to say China is not the only control that has a mixture of government and private entity cooperation as a form of government policy to favor certain key industries. In US, Boeing has been for years assisted by the US Government's Export Import Bank. http://fortune.com/2015/08/25/boeing-export-import-bank/
As an aside, China Development Bank does its job carrying out government policy of assisting domestic companies, but it doesn't do this at the expense of profitability or discipline. In the last decade, it has been the single most successful and most profitable of all Chinese banks. Its success has allowed it to surpass the clout of even the World Bank.
So is Hikvision using this money to sell products at below cost to squeeze out competition? Sure, they might be. But this playbook is done routinely at various businesses around the world. Amazon did it, Flipcart is doing it right now in India, and many others will try its hand at it too. As long as you have the firepower and staying power, it is absolutely valid tactic.
What steps should Hikvision take to achieve and keep customer loyalty? What can they do to fill the PELCO niche? Axis has a very high price point in many market segments. How can Hikvision manage to gather up their customers? I am surprised that Axis and Schnider still have their market shares.
NOTICE: This comment has been moved to its own discussion: What Steps Should Hikvision Take To Achieve And Keep Customer Loyalty?