China S Banking Transformation

In this timely and provocative book, James Stent, a banker with decades of experience in Asian banking and fluency in Chinese language, explains how Chinese banks work, analyzes their strengths and weaknesses, and sets forth the challenges they face in a slowing economy. Without minimizing the real issues Chinese banks face, China's Banking Transformation challenges negative media accounts and reports of "China bears". Based on his 13 years of service on the boards of China Minsheng Bank, a privately owned listed bank, and China Everbright Bank, a state-controlled listed bank, the author brings the informed view of an insider to the reality of Chinese banking. China's Banking Transformation demonstrates that Chinese banks have transformed into modern, well-run commercial banks, playing a vital role supporting China's extraordinary economic growth. Acknowledging that China's banks are different from Western banks, the author explains that they are hybrid banks, borrowing extensively from Western models, but at the same time operating within a traditional Chinese cultural framework and in line with China's governance model. From his personal experience working at board level, Stent describes the governance and management of China's banks, including the role of the Communist Party. He sees China's banks as embedded in ancient concepts of how government and society work in China, and also as actors within a market socialist political economy. The Chinese banking system today bears similarities with banking in Northeast Asian "developmental states" of recent past, and also pre-1949 Chinese banking. As the first account of Chinese banking by a Westerner who has worked in China's banks, China's Banking Transformation should be read by anyone interested in the political economy of contemporary China, in Asian development issues, and in banking issues generally. The book dispels misconceptions and provides insight into the financial aspects of China's economic growth story.

The product of more than 10 years of research, Transformation of China's Modern Banking System provides a detailed study of the evolution of China's banking system from the late Qing era to the Republican era. Transformation of China's Modern Banking System offers a unique and comprehensive analysis of the financing structure, governance structure, incentive and restraint mechanisms, and structural changes of China's modern banking system. Lan Rixu uses historical evidence to show how the transformation of the modern banking system of China reflected an acute awareness of the practical reality of modern Chinese bankers. Transformation of China's Modern Banking System details the systematic changes in China's banking system during the chaotic period when traditional China met the West. Transformation of China's Modern Banking System is a winner of the Second Financial Book Awards, the Golden Goat Awards, co-organized by China Finance, China (Guangzhou) International Finance Expo, and the Finance Affairs Office of Guangzhou.

China's increasing role in global economic affairs has placed the country at a crossroads: how many and what types of international capital-market transactions will China permit? How will China's financial system change internally? What kind of relationships will the Chinese government develop with foreign financial institutions, especially with those based in the United States? Can China broker a sustainable partnership with America that will avoid sending economic shock waves throughout the world? Drawing on the contemporary research of prominent international scholars, the experts in this volume outline the trajectory of China's financial markets since the advent of reform and anticipate their uncertain future. Chapter authors and commentators include Geert Bekaert, Loren Brandt, Lee Branstetter, Mary Wadsworth Darby, Michael DeStefano, Barry Eichengreen, Campbell Harvey, Fred Hu, Xiaobo Lu, Christian Lundblad, Ailsa Roell, Daniel Rosen, Shang-Jin Wei, Jialin Yu, and Xiaodong Zhu. The book begins with an overview of the history of financial-sector development, regulation, and performance and then focuses on the banking sector, discussing the progress, challenges, and prospects of current sector reform. Subsequent chapters describe the role of foreign capital in China's development and analyze the changes in capital flows and controls over time; explore various explanations for China's composition of foreign-capital and foreign-exchange policies, particularly the factors shaping China's reliance on foreign direct investment; and provide an international, comparative perspective on the remarkable growth experience of China and the contribution of its institutional environment to that experience. Contributors dispute the belief that stock market listing has done little to reform state-owned enterprises and take a hard look at the exchange rate regime choice for China, considering the potential long-run desirability of flexibility and the appropriate sequencing of reforms in foreign-exchange policy, domestic banking reform, and capital-market openness. The book concludes with a roundtable discussion in which prominent economists, including Peter Garber, Robert Hodrick, John Makin, David Malpass, Frederic Mishkin, and Eswar Prasad, debate the pace of the appreciation of China's currency and the likely consequences of that policy within and outside of China.

The product of more than 10 years of research, Transformation of China's Modern Banking System provides a detailed study of the evolution of China's banking system from the late Qing era to the Republican era. Transformation of China's Modern Banking System offers a unique and comprehensive analysis of the financing structure, governance structure, incentive and restraint mechanisms, and structural changes of China's modern banking system. Lan Rixu uses historical evidence to show how the transformation of the modern banking system of China reflected an acute awareness of the practical reality of modern Chinese bankers. Transformation of China's Modern Banking System details the systematic changes in China's banking system during the chaotic period when traditional China met the West. Transformation of China's Modern Banking System is a winner of the Second Financial Book Awards, the Golden Goat Awards, co-organized by China Finance, China (Guangzhou) International Finance Expo, and the Finance Affairs Office of Guangzhou.

This book is informative and readable. It will be of interest to anyone wanting to learn about the development of the Chinese economy in general and the reforms of state-owned enterprises in particular. The data and in-depth discussion presented in the book will appeal to academics as well as policymakers. Yin-Fang Zhang, Journal of the Asia Pacific Economy China watchers will welcome a book which provides a detailed insight into the two pillars of that economy: the state-owned enterprises (SOEs) and the state-owned banks (SOBs). This is a scholarly work, rich in detail. Shelagh Heffernan, The Financial Regulator For China to sustain her transformation requires that she tackle reform of her state-owned enterprises (SOEs) and banks. This book comprehensively assesses the scale of the problem, reviews previous reforms and suggested solutions. Finally the authors propose their own reform agenda, sensitive to Chinese realities. Michael Artis, European University Institute, Italy This is an excellent study of the nexus between the effects of party control, the soft budget of state-owned enterprise (SOEs) and the financial fragility of the state-owned banking system (SOBs) in China. It is both sympathetic and knowledgeable about the problems of achieving reform and progress. Beautifully written, it should become the most influential work in this field in the English-speaking world. Charles A.E. Goodhart, London School of Economics, UK This book s starting point is that after two decades of experiments, during which other transition economies have effectively privatised all of their former state enterprises, China is still endeavouring to find a way to reinvent and re-engineer its own state-owned economic establishments. The authors explore these reforms along with the problems of China s state-owned banks, which have long been troubled by the adverse loans of Chinese enterprises and face foreign competition in 2007 under China s WTO commitments. Drawing on wide-ranging case studies of enterprise reform, Becky Chiu and Mervyn Lewis combine their extensive experience to give an authoritative account of China s enterprise and bank reform agenda, involving property rights, improved corporate governance and stimulating enterprise. This book will be of great interest to business economists, academic economists and those following the development of the Chinese economy.

Inhaltsangabe:Abstract: Generally speaking, economic growth is closely related to the efficiency of a country s financial markets. That is, the more varied the investment alternatives by which economic resources can flow within a country and between countries, the more efficient the financial market. This efficiency leads to a higher level of capital formation, and improved capital utilisation, thereby increasing the utility of both savers and borrowers and promoting economic growth. In line with its transition to a market economy China has, amongst other reforms, embarked on a reform of its financial system, transforming its one-bank monopoly into an integrated system of many banks and other specialised financial institutions. The resulting market complexity and the emergence of domestic and international competition gave rise to the marketing of financial services in China. Despite banks increasing marketing sophistication and higher spending on marketing, consumer behaviour is only beginning to react to it. On one hand the emergence of a wide variety of financial institutions and financial products has offset the impact of the social system reform on individuals lives. On the other hand, most Chinese still stay with one of the four wholly state-owned commercial banks, perhaps out of habit, perhaps from a feeling of security with their old banks. The effect on banks has been dramatic, service levels have improved greatly while product quality and variety have become better. However, the lack of market segmentation, partly due to government regulation, limits banks abilities to effectively target consumer groups, (which also hinders consumers information gathering and decision-making). Transformation of banking is hindered by China s poorly performing corporate sector, which strongly undermines banking profitability. China remains one of the weakest countries in terms of strength of the financial sector (Moody s), and the imminent WTO entry might result in disarray in the financial industry. Foreign banks with their sophisticated marketing have already put strong pressure on their Chinese counterparts, who are learning quickly. In the long run, the WTO entry and increased openness of the financial market will increase the competitiveness of the marketplace and enhance the development of the marketing of financial services in China. This dissertation will be divided into two parts. In the first part I will be talking about China s [...]

China's Banking Transformation describes the strengths and weaknesses of the Chinese banking system based on the author's 12 years serving on two Chinese bank boards

The phrase ‘New Normal’ captures the ongoing shift in the pattern and drivers of China’s economic growth. China’s new growth rate is both slower and imposing difficult structural change. These new economic conditions are challenging yet offer opportunities for China and its economic partners. Reforms must be deepened but also make growth more inclusive and environmentally sustainable, over this decade and beyond. This year’s Update offers both global context and domestic insight into this challenging new phase of China’s domestic economic transformation. How are policymakers elevating migrant workers concurrent with increasing consumption? Is China’s government spending enough on education and R&D to ensure it can achieve its aspirations to ascend the global manufacturing value chain and avoid the middle-income trap? Are energy market reforms reducing or increasing the price of gas and electricity in China? What are the consequences of China’s financial reforms and expanding Renminbi trading for foreign banks? What does China’s new growth model mean for the international resources economy and for Africa? Do SOEs face market conditions and are they dominating China’s fast-rising outbound investment? What is China’s strategy for navigating fragmented international trade policy negotiations?