Global Market Brief: Cleaning House in Shanghai

Chinese President Hu Jintao "struck hard" at corruption with the sacking of Shanghai Communist Party Secretary Chen Liangyu. But in a nation where economic relations are based more on personal connections than legal frameworks, the shake up in Shanghai is just one of several steps Hu is taking. These steps ultimately will require foreign and domestic businesses to readjust their personal connections — not with the local Party and government leadership, but with the central leadership in Beijing.