Global standards essential for financial control

Regulators across the globe have enacted a continuing succession of new rules and regulations to help financial firms manage and reduce risk in all sections of the financial markets. Starting with the technology bubble of the late 1990s, an excessive enthusiasm about market opportunities and fraud has resulted in major shocks not only to the financial system, but to the global economy as well.

Market globalization means that all significant economies must reach a high level of trust and compliance for the global economy to remain viable and stable. China is now the world's second-largest economy, and so it must learn from the recent financial crisis and resulting recession in the West.

However, financial crimes, such as fraud, money laundering and terrorist financing, are not just Western issues. Risks increase as economies grow more rapidly, as illustrated by the downfall of a number of Chinese companies. The investment world has welcomed many Chinese companies to their global markets, but some fail quickly as accounting fraud and market manipulation comes to light.