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Senior Nomura Banker Allowed to Leave China After Exit Ban
A significant development has taken place in the world of finance, as a senior banker from Nomura International has been allowed to leave mainland China after being banned from exiting the country last year. Charles Wang Zhonghe, the chair of investment banking for China at Nomura International, has returned to Hong Kong, where he was previously based.
Background
Wang’s exit ban was imposed in September, sending shockwaves through the financial community in Hong Kong. The ban was a result of an investigation into the tech dealmaker Bao Fan, the founder of China Renaissance. Bao went missing in February 2023, and it was later revealed that he was cooperating with Chinese authorities in an investigation.
The Investigation
Wang’s exit ban was reportedly related to his time at the state bank ICBC, where he worked alongside Cong Lin, a former senior executive at China Renaissance. In 2022, China’s securities regulator called in Cong for a "supervisory discussion," and he was later reportedly detained.
The Consequences
The imposition of an exit ban on a figure as senior as Wang sent a chill through the financial community in Hong Kong. Banks and other multinational businesses rely on their executives being able to move in and out of the mainland. The ban also raised concerns about the arbitrary enforcement of local laws, including exit bans.
The US State Department’s Warning
The US state department advises people to reconsider traveling to China "due to the arbitrary enforcement of local laws, including in relation to exit bans." This warning highlights the risks associated with traveling to China, particularly for business executives.
Wang’s Return to Hong Kong
Wang has now returned to Hong Kong, where he was previously based. According to a banker who met Wang recently, he is "doing pretty good." It is not clear exactly when the ban was lifted, but two people said it was within the past few months.
Conclusion
The case of Charles Wang Zhonghe highlights the complexities and risks associated with doing business in China. The arbitrary enforcement of local laws, including exit bans, can have significant consequences for business executives and their families. As the global economy becomes increasingly interconnected, it is essential to understand the risks and challenges associated with doing business in China.
FAQs
Q: What is an exit ban?
A: An exit ban is a restriction imposed by the Chinese government on an individual’s ability to leave the country.
Q: Why was Charles Wang Zhonghe’s exit ban lifted?
A: It is not clear exactly why Wang’s exit ban was lifted, but it is believed to be related to the investigation into Bao Fan and China Renaissance.
Q: What are the consequences of an exit ban?
A: An exit ban can have significant consequences for business executives and their families, including restrictions on travel and the potential for detention.
Q: Is it safe to travel to China?
A: The US state department advises people to reconsider traveling to China "due to the arbitrary enforcement of local laws, including in relation to exit bans." It is essential to understand the risks and challenges associated with traveling to China.
Q: What can business executives do to minimize the risks associated with doing business in China?
A: Business executives can take steps to minimize the risks associated with doing business in China by understanding the local laws and regulations, being aware of the potential risks, and taking steps to protect themselves and their families.
Author: www.ft.com
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