Ling Huawei: What’s Behind State Firms’ Reckless Capital Games in Hong Kong

From Lai Xiaomin to Wang Bin, the downfall of several top financial executives in China sheds light on how managers of state-owned financial institutions can leverage their resources for dubious business dealings in Hong Kong that benefit themselves.

China’s state-backed financial enterprises have made a foray into Hong Kong in recent years in response to the central government’s call to help invigorate the market. With state endorsement, they enjoyed easy access to funding and a more favorable market environment for bond sales.