Why I became a shadow banker in China

Subject: Why I became a shadow banker in China Wed Jul 10, 2013 12:48 am

In the fall of 2010, as deputy head of China investment banking at UBS, I spoke to a group of wealthy investors in Beijing about the outlook for Chinese stocks.

Why I became a shadow banker in China Ed_maslen_wide_20130531102005143658-620x349

Why I became a shadow banker in China Ed_maslen_wide_20130531102005143658-620x349

A rumpled, 50-something man from Hangzhou named Wang Zhigang pulled me aside afterward and asked for my advice about investing. Until then, he had made his money through curbside lending, not stocks.

The threat to China’s financial system is right there - out in the open - not lurking in the shadows.

But, he lamented, his returns had dropped from more than 30 per cent a year to a mere 23 per cent. He worried about his personal fortune, which he had built up from nothing to almost 3 billion yuan (about $490 million back then).

He hardly needed my advice, I told him. “With your performance, even Ba-Fei-Te should farm out some money for you to manage!” I said, referring to Warren Buffett’s name in Chinese.

Read more: http://www.smh.com.au/business/china/why-i-became-a-shadow-banker-in-china-20130709-2pnvi.html#ixzz2YcBjGh9S

Why I became a shadow banker in China

Why I became a shadow banker in China

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