Financial Reform in China: The Way from Extraction to Inclusion [Paperback]

This book focuses on the importance for China to correct the present imbalance in the relationship between the financial sector and the real economy.

The book looks at Chinas current financial system in terms of extractive and inclusive . It asserts that the financial sector is producing huge siphonic effects that distort the overall development of the Chinese economy. Like a giant magnet, the financial sector attracts too many innovation factors, such as talents, capital and entrepreneurship away from the real economy and inhibits the development of the latter. Hence, the book argues that Chinas financial system must now be thoroughly reformed to become an inclusive financial system, where finance and the rest of the economy can co-exist and develop in support of each other.

1. From Extraction to Inclusion: A New Analytical Framework

2. The Extractive Financial System

3. The Finance Curse

4. The Formation of Extractive Financial Systems

5. Insufficient Competition, Implicit Guarantee and Financial Inefficiency

6. Financial Risks

7. Withdrawal of the Financial Restraint System: Reform of the financial system

8. Withdrawal of the Implicit Guarantee: Supportive reforms in other sectors

9. Internet Finance

The book looks at Chinas current financial system in terms of extractive and inclusive . It focuses on the importance for China to correct the present imbalance in the relationship between the financial sector and the real economy.

'Before the 2008 financial crisis there was a mistaken global consensus that more finance was always good for economic development. But we realise now that too much finance, and the wrong sort of finance, can cause harm, extracting too much profit from the reallÓN