The former executive of a Chinese mining company, Calvin Zhu, who has been found guilty and jailed for serial insider trading, has said Chinese cultural factors are partly to blame for his crimes.
Zhu has said these factors influenced his behaviour, as well as his belief that the world of finance was full of investment bankers committing the same crimes, reports the Australian.
Australian-born Zhu made profits for himself and associates using insider information relating to planned takeover bids over a time span of six years at varying companies.
Here are a few of the “Chinese cultural factors” that Zhu says compelled him to become involved in insider trading:
- After telling police his former boss, so-called “war lord” Han Liu, was involved in the crimes, Zhu said “In Chinese culture, that means that Han Liu is a powerful business person; he is successful in business, politics and the underworld.”
In other words- don’t cross your boss, especially if he’s in on the act.
- “One aspect of the Chinese culture is that you would be considered foolish if you did not take advantage of a legitimate opportunity that was presented to you, especially if that advantage is to make money.”
Translation- cheating is OK if you can make some money out of it. (I mean everyone is doing it anyway.)
- Zhu also said, “In Chinese culture, if you are told by your boss to do something, you do it or you risk losing your job. I did not want to lose this job.”
So basically- you say jump and I’ll say…
Since his incarceration, Zhu told The Australian he now realises he “was not a very ethical person”.
Read more here.
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