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Banking & finance
BusinessBanking & Finance
Peter Guy

The ViewJunior bankers find themselves out of depth amid capitalism with Chinese characteristics

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This file photo taken on January 7, 2016 shows an employee counting 100-yuan (US$15) banknotes at a bank in Lianyungang in Jiangsu province. Photo: AFP

Hong Kong’s financial services industry has been infected by a host like in the film Alien - subverted for laundering assets from China.

This self-evident statement is only meaningful and nihilistic when you bear witness to the gravity of money laundering that has forced Beijing to stomp on the brakes for overseas investments. The entire know-your-client (KYC) and anti-money laundering (AML) regimes look like sieves.

“Witness a parallel financial universe where money, price and value are merely constructs in time and space for wealth transfer, ” as Rod Serling, the host of Twilight Zone might say.

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Take an elevator tour of, let’s say, the International Finance Centre. Besides well known international financial institutions, you can find relatively unknown mainland funds and investment companies.

Knock on the door and ask if you can meet an investment manager to talk about a proposal. An assistant usually shows up giving you the excuse to enter the lobby and look about. They usually say they are not interested in meeting you because they stick to their own deal relationships. But, at every mainland investment fund, the offices are virtually empty except for a personal assistant or book keeper.

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Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing. Photo: REUTERS
Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing. Photo: REUTERS
It confirms what lawyers, accountants and service providers have told me. By smartly decorating a shell fund in a prestigious building, it becomes a credible platform for moving assets and money from China into Hong Kong, and from here to anywhere in the world.
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