Understanding China, One Blog at a Time

An American in China

China Knocking off Morgan Stanley- Heaven Help Us

Posted by w_thames_the_d on May 23, 2012


China, known for those four famous inventions: cruelty, xenophobia, piracy and theft is looking to corner the market on a new product- brokerage houses. While your humble author is no expert on things financial, I do know that Chinese and trust are as compatible as ammonia and bleach, they do not play well together. And, as far as I have heard, finances and their management, goes hand in glove with things such as trust and ethics, or so they should. When they do not, we get crises, meltdowns, Madoffs and Enrons. But, if you think that those guys were bad, you have never been to China. What the rest of us see as a ‘gentleman’s agreement’ in terms of morals, does not exist here. I may tell little white falsehoods, and you may reciprocate, there is usually a kernel of truth to what I have said. For instance, I may say that my yearly sales were 55 million when they were 52.5mm, and consider the rest a rounding error. The Chinese, however, will claim sales of 55 million when in reality they do not even own a company nor a car, it is all a lie.

Putting people like that in charge of other peoples money is like entrusting your blood stream with a needle full of the hantavirus, although not immediately mortal, its a losing proposition nonetheless.

Here is what our friends from China have been up to..

excerpt

“SHANGHAI, May 23 (Reuters) – China is rolling out sweeping brokerage reforms to nurture future global investment banks that officials hope could eventually compete with the likes of Goldman Sachs and Morgan Stanley, a regulatory document showed.”

article
http://www.reuters.com/article/2012/05/23/china-brokerages-idUSL4E8GL3QC20120523

ps how do you like the pic of the Chinese sun….

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