The Chinese Financial System at the Dawn of the 21st Century: An Overview

• Autores: Yulu Chen, Yong Ma, Ke Tang
• Localización: Aestimatio: The IEB International Journal of Finance, ISSN 2173-0164, Nº. 2, 2011, pág. 1
• Idioma: inglés
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• Resumen

  • Based on a systematic review and summarization of China�s 30 years of financial reform and development, this paper comprehensively analyzes the past, present and future development of China�s financial system and also presents the mechanism for China�s financial development from the view of political economics. Generally, the Chinese financial system is bank-oriented. The property rights structure, led by state-owned banks, is the prominent feature of the Chinese banking system. Equity, bond, money, currency and real estate markets have been developing rapidly; however, the development rate of these markets varies, and institutional construction generally falls behind the market development. China�s financial decision-making authority belongs to the State Council, and the financial supervision system adopts the mode of �separate regulation.� China�s state-driven, progressive financial reforms have promoted the formation of the government-led financial structure, which is composed of three parts: first, monetary policy, balancing both inflation control and economic growth; second, bank credit expansion under the implicit guarantee of the state; and third, the adjustable pegged exchange rate system based on capital controls.

    The next phase of financial reform in China will mainly focus on the following four key goals: first, to further improve the corporate governance and the mixed operation of financial institutions; second, to construct the institution of a financial market system and improve the effectiveness of the financial markets; third, to re-integrate regulatory resources, combine macro- and micro-prudent views, and establish a comprehensive framework for financial stability; fourth, to promote the liberalization of interest rates, marketization of the exchange rate and the opening of capital accounts based on a progressive approach and to improve the openness of the financial system based on macroeconomic stability.