Luxury Goods, Gift Cards and Corruption in China

choi

Tom Orlik, Nouveau Risk for China Luxury Goods. Wall Street Journal, Nov 1, 2011 (in the page Heard on the Street).
http://online.wsj.com/article/SB ... 08783087097026.html

Quote:

"With expensive gifts a routine channel for corruption, luxury owes part of its explosive growth to the dark side of China's rise.

"government moves to stamp out corruption may hit the sector. In May, the State Council clamped down on gift cards, which are often used to bribe public officials. New regulations requie registration of the real names of the giver and receiver for cards over 1,000 yuan (about $157), and cap gift cards at 5,000 yuan. Aaron Fisher, an expert on the consumer sector at CLSA, says gift cards are around 20% of department-store sales.

My comment: There is no need to read the rest of this report.