From Reuters via today's South China Morning Post, this article doesn't need much comment:
Officials in Fujian province have told schools to caution students against dabbling in the stock market, warning that failed investments could fuel social instability. Students have followed pensioners, housewives and people from all walks of life into the stock market as prices have rocketed in recent months, despite experts’ warnings of a dangerous bubble.
"Local education departments and schools must instruct students to think twice before investing in highly risky stocks," the Beijing News said, citing a government notice in the southeastern coastal province of Fujian. "[The regulation] is to prevent failed investments from affecting family and social stability," it added, warning students not to see the market as an easy way to make a living.
Teachers had a responsibility to help their students get a "correct view" about the stock market, the report said. Financial officials have expressed concern the market may be overheating and warned the public to be careful about letting go of their money.
Michael Pettis is a professor at Peking University's Guanghua School of Management, where he specializes in Chinese financial markets. He has also taught, from 2002 to 2004, at Tsinghua University’s School of Economics and Management and, from 1992 to 2001, at Columbia University’s Graduate School of Business. He is a member of the board of directors of ABC-CA Fund Management Co., a Sino-French joint venture based in Shanghai.
Pettis has worked on Wall Street in trading, capital markets, and corporate finance since 1987, when he joined the Sovereign Debt trading team at Manufacturers Hanover (now JP Morgan). Most recently, from 1996 to 2001, Pettis worked at Bear Stearns, where he was Managing Director-Principal heading the Latin American Capital Markets and the Liability Management groups. He has also worked as a partner in a merchant banking boutique that specialized in securitizing Latin American assets and at Credit Suisse First Boston, where he headed the emerging markets trading team. Besides trading and capital markets, Pettis has been involved in sovereign advisory work, including for the Mexican government on the privatization of its banking system, the Republic of Macedonia on the restructuring of its international bank debt, and the South Korean Ministry of Finance on the restructuring of the country’s commercial bank debt.
Pettis is a member of the Institute of Latin American Studies Advisory Board at Columbia University as well as the Dean’s Advisory Board at the School of Public and International Affairs. He is the author of several books, including The Volatility Machine: Emerging Economies and the Threat of Financial Collapse (Oxford University Press, 2001). He received an MBA in Finance in 1984 and an MIA in Development Economics in 1981, both from Columbia University.
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January, 2008
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