Hiring Princelings in China Common Practice

JPMorgan found itself of the receiving end of a government inquiry when it was discovered that it had hired the children of certain CCP higher-ups in a bid to win back lucrative government contracts.  Needless to say, this didn't go down well with Xi Jin Ping, given his propensity to tell everyone that they're tackling corruption on every level within the Party.

In addition to the JP Morgan examples, the son-in-law of one powerful leader “was key to securing Merrill’s mandate” (paywall) in Industrial and Commercial Bank of China’s $14 billion Hong Kong IPO in 2006—which combined with its Shanghai dual listing, was then the biggest IPO in the world. As the Herald reported, the son-in-law of a former railway minister was instrumental in winning Macquarie the Hong Kong IPO deal for China Railway Construction Corp, the railway arm of the People’s Liberation Army.

The problem is that hiring the offspring of the rich and powerful in government is incredibly widespread because of the "problem solving" skills that the little darlings posess.  QZ.com has a run down of the companies and their hires that probably didn't make into the JPMorgan CCP report.

 

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