Thursday, August 18, 2011

Legal Infrastructure

The below is taken from a Bloomberg article regarding various nefarious securities practices and the lack of enforcement or action at law for retail Chinese citizens.

“The Chinese government hasn’t bothered to create real financial markets, where you have the infrastructure that rewards good behavior and punishes bad behavior,” said Arthur Kroeber, managing director of Beijing-based GaveKal Dragonomics Research, a financial advisory firm. “In a country where legal institutions are weak, there are lots of opportunities for retail investors to get ripped off.”

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