Follow us on TWITTER: http://twitter.com/cnforbiddennews Like us on FACEBOOK: http://www.facebook.com/chinaforbiddennews Recently, the Mainland media outlet Southern Weekly unveiled the relationship between Chinese officials' children and international investment banks in China. JP Morgan, UBS, and major international investment companies employ children and even grandchildren of the Chinese Communist Party (CCP). Inside sources revealed that hiring senior officials' children could bring billions of dollars in return. Analysts pointed out that on the surface, it is foreign investment banks using princelings' connections, but it is also possible that the CCP officials use foreign banks for money laundering. Recently, the New York Times disclosed that the U.S. Securities and Exchange Commission is investigating JP Morgan's hiring of two officials' children. JP Morgan has been relaxing its interviewing process for candidates from those important Chinese families. Although JP Morgan questioned the working experience of Tang Xiaoning, the son of current chairman of China Everbright Group, he was hired. According to Southern Weekly's report, a Hong Kong investment bank executive said, "Many international investment banks acted far worse in China than JP Morgan Chase." JP Morgan, UBS, Merrill Lynch, Citigroup and other international investment banks contracted Chinese state-owned enterprises to the US or listed in Hong Kong. Working as major investment bank executives in China plays a decisive role. Many of these are the children of officials. Their terms of employment and even foreign investment banks' obtaining IPO in China is consistent. Did their employments affect the development of foreign investment in China? IPO is an initial public offering, meaning the first time shares of an enterprise are sold to the public. Merrill Lynch was one of the IPO underwriters of the China Industrial and Commercial Bank of China. In 2004, Merrill Lynch hired Feng Shaodong for its investment banking department. Feng is the son-in-law of Wu Guobang, former chairman of National People's Congress. Credit Suisse and Citibank also employ many descendants of CCP officials, such as Chen Xiaoxin, the grandson of CCP patriarch Chen Yun. In 2005, Australian investment bank Macquarie Group hired Sun Xiang, son-in-law of former railway minister Fu Zhihuan. He is now the vice chairman of Macquarie Capital of China. During his tenure, Macquarie became one of China Railway Construction Corporation's major sponsors, issuing H shares with $5.7 billion worth of financial involvement. A Beijing-based investment bank executive admitted that whether foreign investment banks can successfully obtain the Chinese state-owned enterprises listed in Hong Kong depends largely on foreign investment bank executives' government background in China. Generally speaking, hiring a high ranking official's child as an investment banking manager or president could bring billions of dollars in return. Hubei writer Ruan Yunhua believes that foreign investment banks use princelings to open up the market. In fact, these princelings may also take advantage of these foreign banks to launder money. Foreign investment banks like JP Morgan and other such platforms can provide a very subtle way to transfer property, such as through financing or equity participation. Ruan Yunhua:"This kind of official-commerce transaction is an asset transfer method for officials' children. They are doing it through commercial activity and a Wall Street game. Before being exposed, asset transferring was a game of mainstream society, but after being exposed, it becomes corruption." The U.S. Department of Justice and the SEC are trying to decide whether JP Morgan Chase violated the U.S. Foreign Corrupt Practices Act for hiring children of high ranking officials. However, for JP Morgan Chase, being investigated does not mean the existence of any impropriety. Deng Yu-Wen, deputy editor of the Central Party School Times: "I also believe that these investment banks hire senior officials' children for their father's influence. Are there any violations? I believe so. However, it will take a seemingly legitimate means to transfer interest. From the law's perspective, it is hard to conclude that it is illegal." A surprising story has spread within Hong Kong investment banks. It hints what take place when some foreign investment banks recruit the children of Chinese officials. The most popular question in the interview asks them to write down the names of VIP's that they know, or who can be contacted in China's political and economical circles If the name list is long enough or important enough, they are hired. 《神韵》2013世界巡演新亮点 http://www.ShenYunPerformingArts.org/
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