Chinas Financial System Growth and Inefficiency [Hardcover]

This book examines the volatile landscape of the Chinese economy and the barriers to its continuing development. The author argues that underlying inefficiencies in Chinas financial system currently prevent the further growth of its institutions and inhibit reform of monetary and fiscal policy. Rambures shows that, despite efforts to avoid a middle income trap, such long-overdue structural reforms are still faced with strong resistance from both economic and political circles. Chapters discuss approaches in tackling the Chinese national debt, the recent stock exchange collapse and subsequent currency devaluation, declining trade surplus, the wariness of foreign investors and its negative impact on foreign exchange reserves, and the heavy burden of state-owned zombie companies. The discussion positions current economic events within the context of Chinas transition from a foreign trade and investment-led economy to one that is propelled by domestic consumption, service industries and innovation. Crucially, Rambures also addresses financial trends with reference to pervasive long-term influencing factors such as an ageing population, increasing inequality, corruption, pollution and migration.

Introduction.- Chapter 1) Chinas decision making system.- 2) A non-independent central bank.-  Chapter 3) Chinese banks between profit and control.- Chapter 4) Marginalized foreign banks.- Chapter 5) Lending black market.- Chapter 6) Booming Internet banking.- Chapter 7) Financial market  I: state controlled institutions.- Chapter 8) Financial market  II: fast growing, but unsophisticated markets.- Chapter 9) An unconvertible international currency.-  Conclusion.

Dominique de Rambures is a former international banker who now lectures on banking and finance in China at Paris 1, Pantheon-Sorbonne University, France. He was the first chairman of the Euro Banking Association l.