Morgan Stanley property doubts: Unusual transfer price of equity

Is that a coincidence?　　May 14, a group of Shanghai Wing Group employees to the media reported that the group's two senior executives, said the latter embezzled hundreds of billions of insurance funds, and has many mansions. Wing Yip Group is one of Morgan Stanley's major partners in Shanghai.　　Reported the "mansion", but also in Morgan Stanley and Yong-industry jointly developed "Kam Lun Tiandi" real estate, one of the children of senior executives are referred to the Shanghai office in Morgan Stanley.　　All this, so quiet 3 months of Morgan Stanley "bribery door" abruptly again waves.　　3 months ago, on February 11, 2009, Morgan Stanley said in a filing to the Securities and Exchange Commission (SEC) that the company had recently discovered that a Chinese property employee "appeared to have violated the anti-Foreign Corrupt Practices Act" and would launch an investigation. Earlier in January, the market was rumored to have been investigated by Morgan Stanley's former Chinese property director Guesse Petersen for allegedly violating the U.S. anti-Foreign Corrupt Practices Act.　　Peterson resigned at the end of 2008. The day after Morgan Stanley filed a filing with the SEC, Sonny Kalsi, the world's chief executive, announced the departure.　　Rumor has it that he was implicated in the Peterson problem.　　The U.S. anti-Foreign Corrupt Practices Act, enacted in 1977, was used to punish U.S. businesses or U.S. citizens for bribing foreign public officials. In the suspected bribe-loomed surface 3 months later, the related Chinese suspected of bribery, still hidden in the fog, difficult to distinguish.　　The judiciary in both China and the United States has so far failed to disclose any information on alleged bribery in the case.　　So, the report of the Yong employees, is not a clue to the answer to this mystery? "(Wing Yip Employees) to report the content is not real." Insurance funds are not diverted, housing information is not right, nor is it a mansion.　　May 15, Shanghai Wing Yip Group of people to this reporter denied almost all the content of the report. Wing Yip Group, Shanghai Luwan District Government May 19 to answer this reporter said that the report is a permanent employee personal behavior, the contents of the report without verification. "We are very concerned about this and we are addressing it in a serious manner." "Unusual equity transfer price Morgan Stanley in China's investment partners or counterparties include Shanghai Wing Yip Group, Hainan ya Ju le, Shanghai anxin, Zhejiang greentown."　　Morgan Stanley and these enterprises to cooperate with the project have been famous, such as the East China Sea wide taste of the Ya Ju le clear Water Bay, Kam-lin World ya yuan.　　In this, Shanghai Wing Yip is one of the most cooperative companies in China.　　This reporter looked at Morgan Stanley and the cooperation of all the project information, found in the first commercial real estate project in the city of Morgan Stanley "Kam Lun World", the transaction price is quite unusual. Information shows that the project company name is Shanghai Gorgeous, the current shareholding composition for the Singapore ornate accounted for 70%,yongye Enterprise Analysys company 2¥q (Wing Yip International Co., Ltd.) accounted for 25%, Shanghai Wing Yip Enterprise (group) Co., Ltd. accounted for 5%. Its, the second largest shareholder is Morgan Stanley Holding company, authorized agent for Peterson, registered in Virgin. The time for Morgan Stanley to enter the world of Jin Lun through this company is May 9, 2003.　　At the time, Shanghai Wing, which owns 30% of its shares, sold 25% of its 30% stake to Yongye Enterprise Analysys company 2¥q, with a transfer price of $8.695 million. The deal was clearly a triumph for Peterson, who spent only $8.695 million on--2003 's 25% per cent stake in the year.　　At the beginning of the 1997 Shanghai Gorgeous, 30% of the equity price of 9.25 million U.S. dollars. "Note that 8.695 million is the 2003 price, when the property is going up." "An upward gesture was made by the head of a certain Shanghai company who worked in deep cooperation with Morgan Stanley," and 1997 was just the time of the Asian financial crisis, when prices were low. "The huge contrast between this transfer price and the property market is also unexpected. 1 "This price does sound a bit problematic. An official of the Luwan government said to our correspondent, "we (subordinate companies) of the real estate projects are generally twice times the premium shot, the basic will not transfer the original price." "At the beginning of the 1997, Shanghai's ornate equity portfolio was a lot of local real estate developers in Shanghai." Its shareholding constitutes, Singapore gorgeous 75%, Shanghai East Exhibition Real Estate 24%, Shanghai Yong Industry 5%, Shanghai Construction Real Estate Co., Ltd. to the relocation of the house equivalent to 1%.　　Among them, Shanghai East exhibition has developed with Pudong Development Bank, located at Pu FA mansion in the Lujiazui.　　But the officials said they were "not easy to judge" because they did not understand the whole process of the project's operation.　　One of the more complex "middleman companies" Morgan Stanley has been involved in China's other cooperative project, "The East China Sea, which has been involved in the Shanghai Social Security case, is also quite impressive." This Shanghai's most famous rotten tail property, has been 6 times resell, before the Shanghai Social Security incident, the holder is in turn the Yangtze River computer, Shanghai Oasis, Shanghai Allianz and Kai Kai Group.　　Allianz is one of the platforms for the operation of Social security funds in Shanghai. After the Social security incident, Jingan Land Development Holding Corporation as a transition to the stock, then transferred to the Zhejiang Greentown.　　July 2006, Morgan Stanley in the hands of the green city to take this real estate, its collaborators are Shanghai Shun Xin Real Estate Co.　　Morgan Stanley's price is not low, for 1.96 billion yuan, compared to 15 months ago, Zhejiang Greentown when the high 700 million yuan.　　Morgan Stanley bribery door after the incident, Zhejiang Greentown (hk,3900) sent an email to this newspaper, said that do not know the Peterson this person, but also with Morgan Stanley bribery door has nothing to do. and Shanghai Trust Home has repeatedly clarified that it has nothing to do with the bribery door: "We have enough resources at home, do not need to go through the gray channel to complete the project." "The Lingshui, located in Sanya, Hainan, has also been questioned by the media earlier this year. The project was referred to as the land transaction price is very low, only than the auction price premium of 23%,More than the same year around the same plot of the starting price is about one-second lower.　　In the case of transnational commercial bribery, the intermediary is often the "protective color" of bribery. "Foreign companies are very strict in their financial audit and it is impossible to pay bribes directly to private individuals, and it must be from a third party, or an intermediary."　　"said the head of China Property Fund, a foreign investment bank. The first is a group of "private companies" closely related to government officials, such as companies run by former government officials.　　Such intermediaries have deep political connections and are secretive about their operations. "The success of a foreign investment bank's real estate project transaction will pay the broker a fee, typically 1% to 3% of the project."　　"said the head of China Property Fund, a foreign investment bank.　　A second intermediary is a professional intermediary, such as a law firm and a public relations firm. "Many American listed companies pay bribes to third party PR companies in the name of service charges." "In this way, even if detected, you can escape responsibility for not leaving evidence of bribery," said Amy Sommers, a partner at John Woo international law firm Shanghai Branch.　　"Li Yamei has long been specializing in legal matters relating to cross-border commercial bribery cases." A senior executive of Morgan Stanley's China partner said that the commercial real estate is a large-scale capital operation, including bank loans and the introduction of partners, when Morgan Stanley's Chinese partners are likely to act as intermediaries.　　A good partner can generally bring in money and people, as well as potential sales targets, which are not comparable to bank loans. The "source" of foreign-funded real estate funds in Li Yamei's view, the previous Lucent, Siemens and other commercial bribery cases in China, after the employee left the company, told the company's top brass, so the internal investigation, the parent company learned, decided whether to report the SEC. "The revelation of the Morgan Stanley case may also have happened along the chain," he said. "It is most likely that Morgan Stanley insiders reported.　　"The head of the China Property Fund, another foreign investment bank, said that under the recession, some of the team members who had been laid off from their jobs would probably report it." "Foreign-funded property funds are generally set up to raise funds, such as a foreign investment bank's real estate funds accounted for 10% of the other is to raise funds." This kind of fund life cycle is 5+2 year, if 5 years arrive, still do not make money, extend another 2 years.　　Said the head of China Property Fund, a foreign investment bank. The fund, which sets the life-span, has a greater urgency to gain access than long-term multinationals, and acts with more short-term features.　　After the outbreak of the financial crisis, Morgan Stanley in Shanghai, a number of project business stalled, the previous backlog of contradictions were detonated, "bribery door" to be exposed.　　Commercial bribery cases are very unlikely to go to court, and the U.S. judiciary is more willing to communicate and coordinate solutions to such problems. If the bribery door is verified, wait forMorgan Stanley's may be a ticket.　　The fines are related to the amount of the bribe, as well as to the long-term use of the business and the active cooperation with the justice sector. Such fines are often sky-high.　　In the newly closed Siemens bribery door, Siemens faces a fine of billions of.　　In addition, the SEC will generally force the companies involved to hire a former government or credible person as a third party watchdog, to oversee the company no longer repeat the same. Another result is a disclaimer. If Morgan Stanley's employees have signed an agreement, it is likely that Morgan Stanley will be exempt from responsibility and become a investigation. "In many cases, the companies that are being looked for are trying to turn to investigation, thereby escaping responsibility."　　"Li Yamei said. Of course, the results come early. Morgan Stanley may have to wait two years, or even longer.