Era of High Farce: China Establishes 'Investor Protection Bureau'

China moves to protect investor interests ... China's securities regulator announced here Tuesday that the country has established an investor protection bureau, in a move to better protect the rights and interests of Chinese investors in the capital market. The bureau, which has already been put into operation, will be responsible for drafting and reviewing laws and regulations that protect investors and help establish an education and service system for investors, said the China Securities Regulatory Commission (CSRC) in a press release. Despite a rising number of institutional investors, China's capital market is still dominated by individual investors, who often lack professional knowledge and are at the same time "insensitive but vulnerable to risks," said the CSRC. – Xinhuanet

Dominant Social Theme: In China, too, investors are now to receive the same magnificent level of concern and support that Western investors have access to.

Free-Market Analysis: Oh, boy. Here's what we call an elite dominant social theme – that the West and the East are not only converging economically but also in terms of regulatory competence and concern for the welfare of the individual consumer/investor.

Why is it an elite theme – a fear-based promotion of sorts? Because it is intended to impress on people that only the government can protect one (and one's family) from the depredations of the private sector. The massive government bureaucracy that must be levered at the problem du jour is the only way to tackle the issues of fraud and financial disaster.

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