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Q: why would you work for the SEC of china?

http://news.yahoo.com/china-market-chaos-blamed-exodus-regulatory-turtle...

 

it seems china set up a decent securities and exchange commission before the stock market went crazy, this was probably to get some respect and put shanghai as the center of financial importance instead of hong kong, forcing linkage with trading in hong kong.

we now have government auditors and regulators, problem solved, what's next,

 

the chinese western educated problem solvers were ignored and not supported and they said "bye,bye" and then all hell broke loose on the market.

 

hope somebody learned something from this, it could have all been prevented if people could actually do their job, makes you wonder what wonderful jobs other sea turtles have here, but then again, ignorance is bliss.

3 years 33 weeks ago in  Business & Jobs - Shanghai

 
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China market chaos blamed on exodus of regulatory 'turtles'Reuters An investor looks at an electronic board showing stock information of Shanghai Stock Exchange Composite Index in Beijing.

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An investor looks at an electronic board showing stock information of Shanghai Stock Exchange Composite …

By Samuel Shen and Engen Tham

 

SHANGHAI (Reuters) - At the height of the 2008 financial crisis, as Wall Street slashed jobs, Beijing took advantage of the disarray to poach top Chinese financial talent from overseas to help reform its stock markets.

By summer 2015, China's Securities Regulatory Commission (CSRC) needed them more than ever; a year-long market boom had imploded in a few weeks, and the government was desperate to keep the crisis from widening.

But the best and brightest returnees, known in China as "sea turtles", had already left for the private sector, disillusioned and disappointed.

A former official at the CSRC, one of a group of 20 high-profile returnees, recalled the CSRC's appeal to make "sacrifices for the motherland".

"We moved our families back to China and gave up high-paying jobs, because we wanted to contribute," he said.

He said the group was sent for special training at Jinggangshan, a former revolutionary base used by Mao Zedong during the Chinese civil war.

Their idealism soon turned to cynicism. Their pay was a fraction of what they could earn in the private sector, and the CSRC didn't seem to value them.

"Several years passed, and none of us got promoted," said the official. "Some of us didn't even obtain a concrete position."

"Just at the time they needed people with both domestic and international experience, those most internationally experienced people were forced out," said Liu Li-Gang, China economist at ANZ.

The CSRC did not reply to requests for comment.

BRAIN DRAIN

Those who left include Tang Xiaodong, former head of ABN AMRO's exotic credit derivatives, who served various roles at CSRC including driving reforms to foreign investor access programs; Li Bingtao from J.P. Morgan Chase's global treasury department, who joined the CSRC planning committee; and Luo Dengpan, former student of Nobel Prize-winning economist Robert Shiller, who took charge of CSRC's institutional innovation department.

None of them replied to requests for comment.

Insiders who spoke to Reuters point to a rising wave of resignations within the regulatory apparatus over the last 12 months, just when sound advice was most needed.

"Nearly every week, there are people submitting resignation letters," said an official at the Shanghai Stock Exchange. "And the pace of people leaving appears to be accelerating."

Chinese fund managers say the exodus left Chinese markets in the hands of people who don't understand markets.

"They don't have the same level of expertise as they did in recent years," said a senior Chinese derivatives trader at a foreign bank in Hong Kong.

That led, he said, to misguided, counter-productive policies like the crackdown on derivatives and "malicious" short-selling that some say only accelerated the selloff.

"It's not that they aren't smart," said an executive at a major fund who communicates regularly with the CSRC. "The difference is they don't have financial expertise."

An official still at the CSRC said regulators failed to grasp the significance of the surge in margin finance used for stock speculation that many warned was destabilizing the markets.

It's also criticized for botching reform of the IPO market. It re-opened the market in early 2014 after a year's suspension, but under new pricing guidelines that inadvertently made IPOs a one-way bet that sucked funds from the wider market. After a surge in summer IPOs was partly blamed for setting off the crash, the CSRC suspended them again, indefinitely.

CATALOG OF FAILURES

Such failures have hammered government's credibility, not least with investors who trusted Beijing to rescue the market in July and bought back in.

Government directed 900 billion yuan ($140 billion) into stocks, but indexes continued to fall after a brief hiatus, wiping out all the year's gains, and more than $4.5 trillion in market value - more than Germany's gross domestic product.

The heavy-handed intervention also damaged the credibility of China's public commitment to financial reform.

Analysts were not surprised when global stock index compiler MSCI delayed including Chinese shares in its benchmark emerging markets index, a move that might have brought billions of foreign dollars to China's markets.

Former officials said most of the returnees left due to frustration over their lack of influence over policy, limited opportunities for promotion, and low pay. Others spoke of resentment from colleagues.

Some were effectively forced out by the fallout from Beijing's anti-corruption drive, which led to salary cuts for senior staff and a campaign against "naked officials" - those who move family members and assets overseas in case the official is arrested.

"They can get high pay outside at lower risk, higher return. Why not?" said Oliver Rui, professor of finance at the China Europe International Business School in Shanghai.

(Additional reporting by Kevin Yao in Beijing, Saikat Chatterjee in Hong Kong and the Shanghai and Beijing newsrooms; Writing by Pete Sweeney; Editing by Will Waterman)

 

here is the article if your yahoo or vpn is sketchy.

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3 years 33 weeks ago
 
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Wish it came as a surprise, but it doesn't.

 

Sucks for them but on the other hand I'm not going to drop a tear for people who answered a call that was primarily and ultimately of a racist nature, only proving how western countries give IDs to potential traitors.

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3 years 33 weeks ago
 
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Emperor

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I've read of similar stories from the sea turtles.

 

They come here, very well qualified and experienced, ready to 'give something back to the motherland' (and build a nice career for themselves too of course) and then they run into the guanxi system, where it doesn't matter how good you are, someone's idiot nephew will always get the promotion, and the petty office politics, jealousy and resentment from the people they are working with (and probably showing up), incompetent management, obsession with face ..  the sort of thing most of us working here could identify with to some extent.

 

I'm sure there are some great jobs out there for the returning Chinese, but it seems like there are also a lot of disappointing jobs waiting for them too.

 

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3 years 33 weeks ago
 
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Yeah sounds pretty typical.

 

Schizophrenic policy, I bet somebody at the top pushed to bring these people in with a genuine hope of bringing some order to the growth plans. The people close to the top here can tend to be pretty intelligent and forward thinking.

 

But then the shitheads below them made sure these guys had no path to advancement or reason to want to stick around.

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3 years 33 weeks ago
 
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Putting my tin foil hat on.......

 

These type of stories annoy me. They feed into the general myth that it is big earners that create wealth and jobs. Utter nonsense.

 

These guys are complaining they are not allowed to earn big money in a free market, but they live in a free market. They can go get another job.

 

Shares go up and shares go down. That is the entire point of the free market capitalist system. Wall street pays billions in donations to politicians to get politics and oversight out of financial markets. They want less and less regulation. They want the financial markets to be a free for all.

 

Lol. And these financial wizards are complaining the Chinese Government would not give them loads of cash to try manipulate the markets. Effectively, that is what they are saying.  The entire point of the free market is that Government is kept out of it.

 

But wait. Remember the sub prime crisis, and the "too big to fail" shouts from the banks?  The bankers with their cap in hand begging the Government for money. That whole crisis came down to greedy bankers working without Government regulation. And that is exactly what Wall street lobbied for. And nobody was held accountable for it. The only country to jail any bankers was Iceland.  I think 2 were jailed for very dodgy derivitive dealing that brought a bank down.

 

But yet, last week I saw UK newspapers with headlines blaming the Chinese Government of trying to bring down the financial market. Utter tripe.

 

Markets are manipulated by the banks themselves. Lots of money can be made from stock market crashes. It's the Governments who are victims of the bankers.

 

It's ludicrous. The bankers want no regulation, then share prices fall and the bankers call on Government to pump money into the system. Hundreds of billions are pumped in, from Government to private sector.  These guys are making a killing with that extra money.

 

And it happens because the bankers are holding everyone at ransom. " I need my 10 million a year bonus because society will collapse if I don't do my job". Ever heard that? Yup.

 

Well, here is what they do:

 

http://www.bbc.com/news/business-33673746

 

They gamble with our money to put as much of it in their own pockets as they can. And when they draw bad cards, they just go to Government to get our tax bucks to gamble that away too. And Government fall for it every time.

 

And that's what these clowns in the article are on about. They wanted Government to pay them to manipulate the market.  They are complaining that they were not allowed to do something that is totally against the principles of a free market.

 

Ha ha. Tin hat off now

 

 

 

 

 

 

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3 years 33 weeks ago
 
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Shifu

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cmon chinese stock market is full of shell companies even the idiots know that

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3 years 33 weeks ago
 
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