it's long known China is struggling with reforms in the financial services industry, which has handicapped many world-class financial institutes' inroads into China the holy grail at the moment. For example, GE's largest business - Commercial Finance has stayed away from China despite of all the buzz. The reason is simple - hard to get things back in China. The chairman of J.P.Morgan Chase, an external director of GE, used to say that GE Capital's strength lies in its ability to collect money (vs lend money to the right customers). In China that would definitely be a show-stopper right now due to the lack of a social framework/system to guanrantee ownership of things - anything that can be used as colletaral.
I'm sure with China's progress in the financial services industry it's only a matter of time to develop such an universal system. In the US, for every consumer/commercial loan, a lien needs to be filed through Diligenze to a central registration database. If the borrower does not pay back loans, the collateral will be claimed by the lender based on this lien verification. Why not start up a company such as Diligenze in China? Imagine how big the market is going to be - eventually every borrowing/lending transaction will flow through this system/database. What's more, it's recession-proof as its success correlates to the overall growth of China's financial services industry - which is going one-way ahead.
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