Chinese chops

By THIS IS MONEY
Updated:

 

The Daily Mail City team explains the stamps used as official forms of identification in China and why British firm M&C has got big trouble over them.

With fried rice?

No, these 'chops' are the colloquial name for the stamps or seals used as official forms of identification in China.

It's rare for the Chinese to use a signature when they collect a parcel or pay for something with a cheque. They leave an imprint of their own personalised seal on official documents.

So this is relevant because...

Well, British hotel group Millennium & Copthorne has got some big trouble in China due to a little problem with seals.

Do tell

M&C is the joint owner of a seven-strong hotel chain in China in partnership with a local entrepreneur called Cheung Ping Kwong.

Before Christmas the two parties fell out and Cheung was removed from his position as chief executive at the joint venture. That should have been that.

But M&C recently discovered that its partner had sold a raft of assets, including hotels and development land, behind its back.

How?

Even though he'd been removed, Cheung held on to the company seals, which are taken to represent the full authority of the firm.

He was thus able to act as if he still in charge even though M&C had taken out newspaper ads announcing his departure.

So far this has cost the British group some £12.1m.

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