China wants to build ‘first-class’ investment banks – but isn’t telling the industry how
- China’s call for ‘first-class’ investment banks has left industry players wondering what such firms would look like, and how to build them
- Complex regulatory environment, closed financial system prevent industry from developing along same lines as Western counterparts
But rather than making hurried plans for a future where their firms are mentioned in the same breath as the gargantuan stalwarts of the West, most insiders have instead been left scratching their heads.
“What does ‘first-class’ mean? That has never been clearly defined,” said a senior manager at a top Chinese investment bank. “We can only speculate.”
Intuitively, it should refer to peer institutions that stand alongside household names like Goldman Sachs and Morgan Stanley, but turning that idea into reality is easier said than done.
“The basic structure of the domestic capital market is different from that of foreign countries,” said the manager, who requested not to be named as he was not authorised to speak to the media.
“So if you simply apply foreign standards, it doesn’t really make sense.”
If problems were not solved when there were two different companies...you may even magnify the issues
