COUNTERPARTS IN SHANGHAI
March 26, 2009
I have been at meetings with some of our counterpart organisations in Shanghai, kindly organised by the Shanghai office of SDI. Unsurprisingly, there are large associations for each sector of the financial services industry here. That is because each sector is regulated separately, at national and provincial/city levels. We pride ourselves on running a tight ship and on the diversity of our membership; but learning that the Shanghai Securities Association alone has 542 members did make me feel a little thinly spread.
But that does not mean there is any lack of interest in Scotland from our counterparts. Despite the current crisis facing the economies of the world and our industry in particular, there remains a keen appetite to co-operate and learn from Scotland's experience. The benefit to us, obviously, is to gain greater understanding of how China's financial services are developing.
It has become a cliched quotation but Wang Qishan, the State Counsellor (the State Council is roughly the equivalent of the Cabinet for the whole of China) responsible for financial services, said to Hank Paulson, the then US Treasury Secretary, that 'when the teacher stumbles, the pupil must pause'. Meaning, perhaps translating the Delphic Chinese style into our own language, "so whaur's yer regulation noo, pal?'.
There is undoubtledly a very serious reappraisal going on here of the western model of financial regulation. But from the banks, the securities companies and the regulatory authorities that I have met, there is a real enthusiasm for exchanging ideas and experience with Scottish companies, especially in investment and fund management. Jim Murphy is seeing one of the large state investment funds here in Bejing tomorrow, to promote Scotland as a place where you can put funds under world-class management. And the First Minister is conveying the same message in Shanghai when he is there in 10 days or so. It is a strong selling point for us and there is a receptive audience here. We will now think about what our next steps should be to keep Scotland on the right people's maps.
Owen
