《证券投资学》（英文版）Christopher

Will Chinese stock Markets Mirror the behaviour of the NASDAQ? Where is the solution Christopher Pol Chairman, Greater China Consultancy Ltd

Will Chinese Stock Markets Mirror the Behaviour of the NASDAQ? -Where is the solution? Christopher Poll Chairman, Greater China Consultancy Ltd

3 QUESTIONS RAISED HOWTO DEFINE A WELL REGULATED MARKET”? WHAT RELEVANCEA PRICE/EARNINGS RATIO? F INSTITUTIONAL FUNDS AREA STABILISING FACTOR FOR THE STOCK MARKET WHY ARE DEVELOPED MARKETS SO VOLATILE?

3 QUESTIONS RAISED • HOW TO DEFINE A “WELL REGULATED MARKET”? • WHAT RELEVANCE A PRICE/EARNINGS RATIO? • IF INSTITUTIONAL FUNDS ARE A STABILISING FACTOR FOR THE STOCK MARKET, WHY ARE DEVELOPED MARKETS SO VOLATILE?

HOW TO DEFINE A WELL REGULATED MARKET”?

HOW TO DEFINE A “WELL REGULATED MARKET”?

NANTED B AE 俘 misDeedS CURRENCY CRISIS .STERLINGS FALL DE STABILISATION C SPECELATION FALL OF THE BAHT BANKRUPTCY 多 FALL OF THE RINGGIT·DETs

The financial markets are Dynamic Business is Proactive But Regulators are Reactive not “ Proactive The System of Regulation and Enforcement can never be completely Flexible and dynamic Importance of Fiduciary Responsibility

The Financial Markets are Dynamic • Business is “Proactive” • But Regulators are “Reactive” not “Proactive • The System of Regulation and Enforcement can never be completely Flexible and Dynamic • Importance of Fiduciary Responsibility

Financial Infrastructure MAIN FACTORS FOR FUNDS Centred around Public Government vestors Financial Institutional Policemen Managers

Financial Infrastructure MAIN FACTORS FOR FUNDS Government Financial Policemen Institutional Managers Centred around Public Investors

Government Regulators ahd central Bank Financial policemen are advisors to (Follow and abide by Rules Regulations) Institutional Quoted Companies Accountants Pensions on Stock Market Lawyers Insurance Co (life and Mutual Funds Privatised Industries Merchant banks Private Investor Previously Nationalised Commercial Banks Direct Indirect Stock Market

23 Government Regulators and Central Bank Financial Policemen are advisors to (Follow and abide by Rules & Regulations) Investors Institutional Quoted Companies Accountants - Pensions on Stock Market Lawyers - Insurance Co.(life) and - Mutual Funds Privatised Industries Merchant Banks Private Investor Previously Nationalised Commercial Banks - Direct - Indirect Stock Market

PRIVATE SECTOR Investment Stock Commercial Accountants Lawyers Bankers Brokers Banks Conflict of Interest?

PRIVATE SECTOR Accountants Lawyers Investment Bankers Stock Brokers Commercial Banks Conflict of Interest?

Conflict of interest · Who is the client? Who are the financial policeman Responsible to? Can regulation be protect with Financial Policemen being Proactive?

Conflict of Interest • Who is the client? • Who are the Financial Policeman Responsible to? • Can Regulation be Protect with Financial Policemen being Proactive?

NVESTORS Institutional Private Pensions Insurance Mutual funds

INVESTORS Institutional Private Pensions Insurance Mutual Funds