What is amazing about the article is how they describe an utterly contemptuous system so blandly.
The article reveals that Chinese securities firms routinely deliver fund managers gifts including "envelopes containing cash" thus "undermining the rigorous research-based approach."
The article is coy about what it is saying - but here is my interpretation. Fund managers buy securities from brokers without due diligence and those securities may be worthless or dramatically overpriced. The brokers are thus looting the funds. To make this work they are kicking back "envelopes of cash" to the fund managers who are thus participants in the scheme to loot their own funds.
Losers of course are clients.
But it is not just cash that is being delivered to fund managers. The article talks about "attractive saleswomen" delivering "breakfast" to "the manager of a fund company".
Euphemisms abound. To quote the article:
A recent recruitment ad placed by a securities firm in Shenzhen also spelt out clearly that it was looking to recruit attractive and "open-minded" women as sales representatives.The system they describe is where "attractive and open minded women" deliver "breakfast" to men responsible for allocating other peoples money and where this will undermine research-based investment.
Are you a client or limited partner in an China based investment partnership or private equity fund?
Are you uncomfortable yet?