February 11, 2006
China's Security Industry Needs Repair
In 2004 adn 2005, due to bad managemnt and not enough flotations according to Economist writers, 130 security companies in China lost 15 billion yuan;(about $2 billion).
China's capital amrkets are not yet developed apaprently because the security firms are not strong. The government has been busy trying to reform the banks and shares prices have gone down; even though China's stock market has hit a high for these last 11 months.The China Securities Regulatory Commission seems to carry teh most problems. It does not want to allow big name security companies to go bust! ?
Apparently regional govenments own the paper that these security firms have! huh?
No one wants to "offend" thse govenments by putting anyone out of business!
Another interesting point: the Chinese have no obligation to let other people into their securities industry.
What do you think about this?And where lies a compromise?