Liu Zhiqin, a senior fellow at the Chongyang Institute for Financial Studies of Renmin University of China, was interviewed by CCTV Global Business program on billionaire George Soroson investing in China PSBC IPO on Sep.28th.
Liu says the performance was quite well and satisfied all the parties concerned. But we had to be careful for George Soros’ investment, for it mean double sizes of one thing, profits and loses, and he always try to be in the middle point. However, nobody in the world can really understand and make a good judgment for the Chinese banks. Especially when we review all the Chinese banks listed in the past, they perform very well, but the stock performance can not meet the expectations especially the individual investors’ hope. We should be a little bit conservative to follow his instructions.
He says that Hong Kong market is ruled by law, and the legal system is quite mature. That is why Chinese banks and companies are eager to be listed there, which is a proof that you are a good partner. The companies listed in Hong Kong have more chances to get better results.
Liu points out that the Chinese custom should get used to the international market. Their is a contradiction between the supply side and demand side. Chinese custom are used to get high return in a short time and high quality service. For most of the banks, they try their best to lower the cost and even close the branch in the rural in order to increase efficiency and avoid risks in the management. On the other hand, Chinese want to expend in domestic and oversea market, and they want to be the strongest. That made banks have a different behavior. But the risks control must be the focus for all the banks.