Given the current state of the world’s financial markets, we could not find a better quote than that provided, back in July 2007, by Liu Mingkang, the Chinese banking regulator:

 

“Only when the tide goes out can you see who is swimming naked! It is essential to take measures in good time”.

 

Indeed!

 

Perhaps, as he was referring to risk in the Chinese system, he was already taking those measures…

Source: ChinaBusinessServices.com

It is not all that long ago that the big credit crunch banks were being lambasted in some quarters for their plans to invest heavily in Chinese banks, and that at least one pundit was predicting “The Coming Collapse of China”. How things change! Now it is the titans of Wall Street and the City that have faced collapse, and western government intervention that has saved (we hope!) the financial system. Today’s Telegraph carries a nice quote from Martin Sorrell, Chief Executive of WPP:

“This [rescue] is a form of state directed capitalism which is more akin to the Chinese model than it is to our own.”

Indeed, it was never in much doubt that the Chinese would bail out their own banking system in the event of a crisis – and they did when faced with triangular debts (the model for our own, latest crash?) and non-performing loans (NPLs) via the set up of the asset management companies (AMCs) and Central Huijin. Read more »

Coke’s juicy M&A plans have already been raked over in the press. But next it is likely to be raked over by Chinese anti-monopoly officials (amongst others). As AP reports:

“Coca-Cola’s $2.5 billion offer…for China Huiyuan Juice Group Ltd. already has stirred nationalist opposition. Comments posted on Chinese Web sites criticized the sale as the loss of a leading company to foreign owners. The anti-monopoly law, which took effect Aug. 1, was welcomed by foreign business groups as a step toward clarifying commercial conditions in China. But Beijing has released no details of what companies must do to comply.    

….”This acquisition is a very big one. So when we receive the [M&A] application, we will inspect it carefully in accordance with the Anti-Monopoly Law,” a ministry spokesman, Yao Shenhong, was quoted as saying.

…Mergers must undergo an anti-monopoly review if the company created by the deal would have revenues of 400 million yuan ($58 million) in China or 10 billion yuan ($1.3 billion) worldwide, according to a government notice Aug. 3.

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