| Tien Dan, president of Changjiang Securities, and BNP Paribas Peregrine's Dry shake on it |
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Behind the scenes of China's quickly developing financial system a lot of frantic negotiations are taking place about the entry of foreign investment banks into the domestic market. Joint ventures are the likely vehicle. Though few involved are comfortable admitting it, international banks and Chinese securities houses are eyeing each other up, wondering who to hold hands with.
"It's like a terrible school disco," says one banker. "Everyone is waiting to see who will pair off with whom when 'Stairway to Heaven' starts to play."
Under China's regulations, foreign players are unable to underwrite or act as brokers in the lucrative domestic A-share equity market. But new laws, drafted by the China Securities Regulatory Commission in December, may be about to change that.