I was in the 3rd China Finance Forum last weekend. Some speakers are really good and open, while some others are talking on rubbish and wasting audience's time. The last speech from Xu Xiaonian, the managing director of Goldman Sachs Gaohua, the U.S. investment bank's joint venture, however, gave something unique for me to think.
His topic is on how China, the world's fastest developing ecnomy, could set up a worldwide financial organization. He compared the financial sector to the manufaturing sector, and expected some successful private financial organizations will come out to serve the world as Lenovo or Huawei, or ZTE in the manufacutring sector. His basic arguement is that China should continue to open its financial sector as well as introducing managements with international views and incentive salary system to set up world-level financial organizations. He also said that the successful financial organizations will finally come from private sector in which profit is everything, instead of state-owned ones, where management cares more on the employment rate and society stability.
I don't usually believe in economists, especially those in-house researchers, as they always speak for their companies. Xu may have a point saying state-owned companies may not become the worldwide successful onew. I have seen many bankers, or traders from state-owned companies are complaining on their salaries as well as their jobs. but I don't believe the private companies could neglect the employment rate and society stability. As one of the corporate ethics, companies should care about the social principles instead of 100 percent caring on revenue.
Also, I think Mr. Xu may miss another point on the creative culture among the sectors. Lenove as well as Huawei both have their own technology, while now the financial sector in China is only learning from outside. During the conference, it is so common to hear people, from banking to futures brokering, all talking about the difference between China and other countries.
"Now, China is *****, different from the other countries with ****, so that's why China will change".
I am not sensitive on the gap. If China has 1 percent people drink milk, while 60 percent of the U.S. people drink milk, I still don't think China will have 60 percent of people drink milk in the future as China will not become U.S. I believe in China's own character, say, environment, geography, habit, and or so.
That's like the financial sector. We may not have another Goldman Sachs or Morgan Stanley, but we may have a Chinese financial service provider doing different business with investment bankers but succeed in the world. Let's see.