Did Banks Bribe Chinese CEO By Hiring Daughter?

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Did Banks Bribe Chinese CEO By Hiring Daughter?

If you’ve been following news in China, then you may have heard about China’s Tianhe Chemical’s IPO. This IPO was one of the larger ones in China in recent memory, netting $654 million dollars in a Hong Kong based debut. Now questions are being raised over the hiring of CEO Wei Xuan’s daughter.

Two of firms who ultimately worked on the IPO, UBS and Investec, had hired Ms. Joyce Wei, while a third, JP Morgan, backed off the IPO after being investigated for hiring relatives of well-connected people.

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The Tianhe Chemical’s IPO was the fourth biggest in Hong Kong this year, and those banks that were able to sell their services to the company must have certainly pocketed a tidy profit. The incentives for any attempt at bribery were certainly there, but does hiring a relative of major business leader really constitute an illegal act?

After all, if the person being hired is well qualified, would it be right to decline hiring them simply because their relative is well-connected and it might raise some questions? Further, proving that the person in question was hired due to their connections, not their qualifications, may prove to be difficult in court.

JP Morgan Case Drawing Attention

JP Morgan has been under investigation for hiring the children and other relatives of well-connected people. In this case, regulato