China's Crackdown

Chinese brothers Tang Wanxin and Tang Wanli were among the world's most successful tomato farmers. Between 1986 and 2004, they built their tomato company, D'Long International Ltd., into a behemoth on the Shanghai and Shenzhen stock exchanges. The conglomerate invested heavily in hundreds of industrial and financial services companies.

Although the Tangs may have been farmers when they started D'Long, they were no ordinary farmers.

The CSRC responded quickly to its new powers, issuing guidelines right after the government passed the amendments. Liu, though, is still critical of the new enforcement measures.

"The CSRC still will not have subpoena powers, which means that its ability to prevent abuse will be limited since it will not be able to access information until someone is charged or a company collapses," he says.

"And they're going to have to endure the same evolutionary cycle that we did," he says. "It all won't happen in one fell swoop."


Julius Melnitzer

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