Wang's big ambitions

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Wang's big ambitions

Wang Qishan is president of People's Construction Bank of China and chairman of cicc, its investment-banking joint venture with Morgan Stanley. His banking group is the third biggest in China by assets and employs half a million people. He was formerly a deputy governor of the People's Bank of China and is very highly regarded by China's economic chief, deputy premier Zhu Rongji - so much so that he's shortlisted to be the next central bank governor. He spoke frankly to Steven Irvine about Morgan Stanley, the joint venture and investment banking.

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Over the next 10 years do you see China developing the way Japan did, with big domestic securities firms dominating and very little foreign participation, or will foreign investment banks have a more active role?

Currently, the entities involved in investment banking in China are mostly foreign. In the listing of Chinese enterprises in overseas capital markets, foreign investment banks have gained more than 90% of market share. As far as Chinese entities are concerned, we don't see many players in this industry. Bank of China International and other Chinese entities incorporated in Hong Kong play the role of financial adviser and team up with international investment banks to do deals. There are two aspects to my answer. For certain products in the investment banking industry we'd like to employ the Japanese model, but for others that are already open to international investment banks, we can't take them back. A more open and competitive market will continue and will involve foreign banks. But, for example, a less open market will be maintained for primary and secondary offerings of "A" shares [domestically listed shares], the secondary market for treasury bonds, and the establishment and operation of investment funds.


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