Recently news was unveiled that two people from
China's securities industry were taken away by police.
One is Zou Yu, director of Fixed Income dept.,
Wanjia Fund Management Company;
another is Yang Hui, Executive General Manager of
Fixed Income dept., CITIC Securities.
In addition, the leadership of the Bank of China(BOC)
and the China Development Bank(CDB) were changed,
This has attracted media attention. Analysts have pointed out
this action is like「knick on the hill to scare the tiger」,
and it will make some people somewhat restrained,
but Xi Jinping's real purpose isn't to arrest the big tiger,
and the big tiger is just scared of nothing.
Recently, the leadership of China's Banking system
was changed frequently.
Hu Huaibang, the former Chairman of the Bank of
Communication succeeded Chen Yuan and
took over as the Chairman of CDB. Tian Guoli, the former
Chairman of CITIC Bank took the place of CCP secretary of BOC.
The Hong Kong Ta Kung Pao analyzed that these changes
are a Continuation of a series of leadership changes in China's banking system.
In the last one and half years, eight major banks in China
have changed their leaders.
Oriental Morning Post reported that it was confirmed
on April16 that several ministries are being jointly-investigated over black money of the bonds market,
and the police have taken away Yang Hui, the Executive
General Manager of Fixed Income dept., CITIC Securities.
In the same day, Zou Yu, the director of Fixed Income dept.,
Wanjia Fund Management Company was investigated by police.
The report analyzed that although
the two companies had declared that
the reason why the director of their fixed income dept.
was taken away by the police is a「private issue」.
But there're more and more information to show that
this is research initiated by high level central CCP leaders
on"Class C" accounts in China's interbank bond market.
This investigation is expanding to the entire bond market.
Furthermore, oversea media had spread a message
from CCP Supreme Procuratorate for a long time,
「CCP's anticorruption action will start from the
executive leaders of the finance industry after the Chinese New Year.
The name list has been drafted.」
The U.S. World News Net analyzed that currently
the「earthquake」 in financial circles is focusing on「traders」,
but it's unknown how big is the scope it will touch,
and how far back it will reach.
The report analyzed that in the past ten years, in China's
financial circles, especially the funds and securities,
there are heavy black scenes which were not
removed nor uncovered.
It is hoped that this time's earthquake is a knocking action
that will shock the big tigers in financial circles.
Professor Xie Tian, who is from Aiken School of Business,
the University of South Carolina, said that
this kind of「knick on the hill to scare the tiger」 action
may make some people somewhat restrained,
but we can't see whether Xi-Li authority
really will fight the tigers.
That's the reason why he has a very negative attitude.
Xie Tian:"The protagonist behind it all,
the final black money tiger wasn't touched.
The leadership of China's Banking industry has changed
it's position, but we don't know what kind of end those leaders will face.
In general, Chinese people don't have any confidence
in the CCP's guarantees and promises.
This grabbing of a big tiger looks like a false alarm.」
Well, since CCP doesn't want to touch the"tigers",
why does it fight the financial sector in such high profile?
Mr. Zheng, a Chinese economist, said that
there're many listed companies which do fraud cases,
there're many kinds of black-box operations because the
system isn't transparent, there is a benefit transmission system.
Everybody knows how dirty China's financial industry is.
Mr. Zheng, a Chinese economist,」It can't be worse.
Everybody knows it. I'm not talking about one sector,
There are many sectors very deep, very dark. Everyone know it.
And if it goes on, nobody can have a good end.
So how can everybody deal with it?
People have to be changed when there's no road left.
Progress is forced to happen in this kind of situation.」
Mr. Zheng pointed out that an economic body
can't operate for a long time with an unhealthy, morbid institutional attitude.
Therefore, nobody wants to hide and cover the dirt.
Xie Tian said that privilege manipulates China's financial sector.
They use their power to do black-box operations,
and derive infinite profits.
Xie Tian:"So I think this pattern can't be changed.
If it wants to change, there must have a force that
can balance the power and privilege of the CCP.
At that time, it means the CCP will collapse.」
Xie Tian pointed out that if this black-box operation
continues, it will destroy the CCP from the financial sector.
If CCP wants to break this vicious cycle situation,
it must destroy itself from inside.
In fact, China's finance is closely tied with its politics.
