Simon World :: Doing business in China

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March 04, 2005

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Doing business in China

The NYT is now looking at the Goldman Sachs joint venture in investment banking. I looked at this last August, in a post called The Money Box. To get the JV going, it turns out GS didn't just bail out Hainan Securities but also agreed to lend US$100 million to banker Fang Feng Lei. Mr Fang will now become chairman of Goldman's new Beijing based investment bank. The NYT article looks at Fang's background.

Securities Industry News (sub req'd) covered the same issue in early February, including quotes from Fons Tuinstra. The article concludes:

"The [Securities and Exchange Commission] claimed it [the GS deal] wasn't a bribe, but it does leave a bad taste in your mouth," said one close observer of the deal, who also didn't want to be named.

"This is how business is done here," said a China-based banker who also requested anonymity. "Some would say it looks like a bribe. Others, just a price to play the main game."

Quite.

posted by Simon on 03.04.05 at 03:53 PM in the

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Comments:

They obviously forgot two important maxims.

"Never get involved in a land war in Asia."

and

"Never do financial business with somebody named after a dog."

No, wait. Forget the first one. Doesn't apply here yet.

posted by: Jim on 03.04.05 at 07:45 PM [permalink]

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