Will Chinese stock markets Mirror the behaviour of the NASDAQ? Where is the solution? Christopher Poll Chairman Greater China Consultancy Ltd
Will Chinese Stock Markets Mirror the Behaviour of the NASDAQ? -Where is the solution? Christopher Poll Chairman, Greater China Consultancy Ltd
3 QUESTIONS RAISED HOWTO DEFINE A WELL REGULATED MARKET”? WHAT RELEVANCEA PRICE/EARNINGS RATIO? F INSTITUTIONAL FUNDS ARE A STABILISING FACTOR FOR THE STOCK MARKET. WHY ARE DEVELOPED MARKETS SO VOLATILE?
3 QUESTIONS RAISED • HOW TO DEFINE A “WELL REGULATED MARKET”? • WHAT RELEVANCE A PRICE/EARNINGS RATIO? • IF INSTITUTIONAL FUNDS ARE A STABILISING FACTOR FOR THE STOCK MARKET, WHY ARE DEVELOPED MARKETS SO VOLATILE?
MVAN上D4 mISDEEDS CURRENCY CRISIS STERLINGS FALL DE STABILISATION SPECULATION FALL OF THE BAHT BANKRUPTCY Ei FALL OF THE RINGGITa DEBTS
The financial markets are Dynamic · Business is“ Proactive” But Regulators are Reactive not “ Proactive The System of Regulation and Enforcement can never be completely Flexible and dynamic Importance of Fiduciary Responsibility
The Financial Markets are Dynamic • Business is “Proactive” • But Regulators are “Reactive” not “Proactive • The System of Regulation and Enforcement can never be completely Flexible and Dynamic • Importance of Fiduciary Responsibility
Financial Infrastructure MAIN FACTORS FOR FUNDS Centred around Public Government vestors Financial Institutional Policemen Managers
Financial Infrastructure MAIN FACTORS FOR FUNDS Government Financial Policemen Institutional Managers Centred around Public Investors
Government Regulators ahd Central Bank Financial policemen are advisors to (Follow and abide by Rules Regulations) Investors Institutional Quoted Companies Accountants Pensions on stock market Lawyers Insurance Co (life and Mutual Funds Privatised industries Merchant banks Private Investor Previously Nationalised Commercial Banks Direct Indirect Stock Market
23 Government Regulators and Central Bank Financial Policemen are advisors to (Follow and abide by Rules & Regulations) Investors Institutional Quoted Companies Accountants - Pensions on Stock Market Lawyers - Insurance Co.(life) and - Mutual Funds Privatised Industries Merchant Banks Private Investor Previously Nationalised Commercial Banks - Direct - Indirect Stock Market
PRIVATE SECTOR Investment Stock Commercial Accountant nts Lawyers Bankers Brokers Banks Conflict of Interest?
PRIVATE SECTOR Accountants Lawyers Investment Bankers Stock Brokers Commercial Banks Conflict of Interest?
Conflict of interest · Who is the client? Who are the financial policeman Responsible to? Can Regulation be Protect with Financial Policemen being Proactive?
Conflict of Interest • Who is the client? • Who are the Financial Policeman Responsible to? • Can Regulation be Protect with Financial Policemen being Proactive?