With new regulations and mandates, is the party over for China’s finance sector?
www.scmp.com
China’s finance sector was once freewheeling, but new regulations and mandates from officials suggest banks’ new role looks beyond simple profit-seeking.
  • DamarcusArt@lemmygrad.ml
    37·
    9 months ago

    Some analysts have warned that Beijing’s top-down approach is the opposite of what is required to become a genuine financial superpower.

    “No country in history has developed strong financial markets through administrative mandates and controls,” said Chen Zhiwu, a chair professor of finance at the University of Hong Kong. “These administrative interventions will kill incentives and stifle competition. If Beijing wants to control lending and interest decisions, it will effectively make all banks nearly the same.”

    I do wonder if the people saying this stuff are genuinely this ignorant, or if they are just saying it to manipulate people who are ignorant. I wonder how the west managed to become financial superpowers? What actions did they take to get there, hmm?

    Weird how these guy scream about how you need a “free market” to succeed, yet that same “free market” capitalist system causes financial crash after financial crash. The same lack of regulation these POS economists insist is “vital” for a strong economy don’t do anything other than squeeze the working class for every cent. I do wonder how much of their own bullshit they believe vs how much of it they spout because they know that financial regulation prevents their nonstop robbery and manipulation of markets.

    The whole article just screams “Waaah! Our executives aren’t allowed to be POS assholes to the poors anymore! America, please, my rich bankers yearn for freedom!” Which I guess isn’t too surprising coming from the scmp. I do notice they seem to be avoiding talking about why the government is doing this, just framing the entire thing as “banks will lose profits from this.” which is like, yeah, that’s the fucking point.

    I wonder what these West-worshippers will do in 10, 20 years when the west is actively collapsing and China is doing better than ever. Will they admit their past faults? Will they act like China’s success is due to the west somehow? Will they pretend they never spent all their time kissing white western ass and act like they always supported socialism?

    • loathsome dongeater@lemmygrad.mlEnglish
      14·
      9 months ago

      Financiers actually wholeheartedly believe that they are markers of development rather than parasitism. It’s what makes this class so dangerous. They believe their rapacious self enrichment is for the good of everyone.

    • amemorablename@lemmygrad.ml
      11·
      9 months ago

      I do wonder if the people saying this stuff are genuinely this ignorant, or if they are just saying it to manipulate people who are ignorant. I wonder how the west managed to become financial superpowers? What actions did they take to get there, hmm?

      Colonialism and imperialism, in a word. I know you were being rhetorical, but just to make the point because it’s an aspect of the equation that the “free market” worshipers tend to gloss over.

      Also, to this line in particular by the person quoted in the article:

      “No country in history has developed strong financial markets through administrative mandates and controls”

      It’s worth noting that their “free market” utopia has never existed in the first place. The US, for example, has administrative mandates and controls; it just tends to orient what it has in favor of the capitalist class consolidating power. Their kind of thinking is one of an implicit denial of power dynamics, elevating the ideology “free market” above power dynamics themselves, obfuscating any bias toward the capitalist class in the process. In contrast to how the mentality of socialist projects directly confronts the power dynamics, does not act shy about them, and says, “Our society is going to be openly and studiously oriented around engaging with power dynamics and having no qualms about plainly being biased in favor of the working class.”

      If the capitalist class openly and plainly stated, “We’re by and for ourselves and we will exploit the working class relentlessly in order to do so,” I think it’s safe to say people would not be happy. So they try to frame it as a patron-like benefactor instead. Which is likely where some of that “rich person grows a heart and becomes charitable” storyline in RL propaganda and in fiction, comes from.

      (Mind you, I’m saying much of this in relation to the US and its glorification of the “free market.” I know the design in China is a bit more complicated.)

      • DamarcusArt@lemmygrad.ml
        10·
        9 months ago

        Yeah, it was completely ignorant, willfully or otherwise, of the role imperialism played in America’s dominance. It’s very strange to see Chinese nationals fall for this “just follow the west’s instructions exactly and you’ll be rich like us” bullshit the west peddles. No idea how anyone could fall for it at this point. Though I guess they are wealthy bankers, so they would prefer a western model, that way they keep their wealth.

        • PolandIsAStateOfMind@lemmygrad.ml
          11·
          9 months ago

          It’s very strange to see Chinese nationals fall for this “just follow the west’s instructions exactly and you’ll be rich like us” bullshit the west peddles.

          Chen Zhiwu, a chair professor of finance at the University of Hong Kong

          Dude’s 100% entrenched relic of colonial academia.

  • Tankiedesantski [he/him]@hexbear.netEnglish
    19·
    9 months ago

    I can’t wait until the paid shills for the financier class respond to this and make socialism look a billion times better than People’s Daily or Pravda ever could. This is how they responded to Xi’s meeting with American business leaders and the replies and quotes are just full of normies getting red pilled: