A man carrying a kite in the shape of the Chinese national flag walks along the Bund as the sun rises behind the buildings of Pudong’s Lujiazui financial district in Shanghai in October 2015. China is seeking to build heavyweight investment banks to take on foreign players. Photographer: Bloomberg A man carrying a kite in the shape of the Chinese national flag walks along the Bund as the sun rises behind the buildings of Pudong’s Lujiazui financial district in Shanghai in October 2015. China is seeking to build heavyweight investment banks to take on foreign players. Photographer: Bloomberg
A man carrying a kite in the shape of the Chinese national flag walks along the Bund as the sun rises behind the buildings of Pudong’s Lujiazui financial district in Shanghai in October 2015. China is seeking to build heavyweight investment banks to take on foreign players. Photographer: Bloomberg
Michael Tai
Opinion

Opinion

Macroscope by Michael Tai

As China’s dream of ‘aircraft-carrier-sized’ investment banks takes shape, it must not repeat US mistakes

  • China is allowing foreign banks to control securities firms, but also seeking to create national champions by allowing its biggest commercial banks to offer investment banking services
  • To avoid a repeat of the US’ experience of financial crises, Chinese regulators must be on guard against banking excesses

A man carrying a kite in the shape of the Chinese national flag walks along the Bund as the sun rises behind the buildings of Pudong’s Lujiazui financial district in Shanghai in October 2015. China is seeking to build heavyweight investment banks to take on foreign players. Photographer: Bloomberg A man carrying a kite in the shape of the Chinese national flag walks along the Bund as the sun rises behind the buildings of Pudong’s Lujiazui financial district in Shanghai in October 2015. China is seeking to build heavyweight investment banks to take on foreign players. Photographer: Bloomberg
A man carrying a kite in the shape of the Chinese national flag walks along the Bund as the sun rises behind the buildings of Pudong’s Lujiazui financial district in Shanghai in October 2015. China is seeking to build heavyweight investment banks to take on foreign players. Photographer: Bloomberg
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Michael Tai

Michael Tai

Dr Michael Tai is a fellow of the Royal Asiatic Society and author of US-China Relations in the 21st Century: A Question of Trust.