Banking industry -- Innovations, Socialism -- China, Banking, finance and accounting industries, Business, Business, international, and Economics
The Chinese government has decreed that, as of 1984, the People's Bank would retire from normal commercial operations to become a specialized central bank; this transformation of the entire Chinese banking structure has resulted in a new freedoms and challenges for the country's bankers. Bankers in China are now evaluated on their ability to generate profits, but they are still hampered by the lack of bankruptcy laws and by government pressure to finance projects that are commercially unsound but that conform to orthodox Marxist economic policies. CHINA'S BANKERS BEGIN TO GET OUT OF THE RUT 'China's banking system had its Big Bang two years ago,' observed a People's Bank official. 'Some complain that it was like [...]
Banking industry -- Finance, Socialism -- China, Banking, finance and accounting industries, Business, Business, international, and Economics
Since 1984, there has been a growing impetus in China to reopen the Shanghai stock market and to allow shares to be freely traded in other centers, but Chen Muhua, the president of the People's Bank, has rejected these appeals. Bank officials are opposed to reopening the stock market for both ideological and economic reasons. The Communist Party is opposed to securities speculation in principle, and the banking industry fears that its own profits will threatened by the competition generated through unrestricted share trading and bond floatation. Although present Chinese law forbids stock trading between individuals or enterprises, banks are authorized to act as dealers and to market as well as discount securities. Economists who are trying to liberalize China's trade policies argue that share capital will promote innovation and initiative while maintaining communist ideals. SUDDENLY THE STOCK MARKET IS OK The official text published by the normally staid official New China News Agency read liek a broker's blurb. Yanzhong Photocopy Company's subsidiary went public [...]
China -- Economic aspects, Socialism -- China, Industrial policy -- China, Economic development -- China, Capitalism -- China, Communism -- China, Banking, finance and accounting industries, Business, Business, international, and Economics
As part of China's policy of economic liberalization, the Chinese have been moving cautiously into share ownership of business enterprises and regional money markets. The liberalization of the country's financial markets over the past three years has been partly inspired by the dramatic effect that share ownership had on the agricultural sector of the economy. The regional markets and the Chinese banks operating within them are described; regional markets have become so important that economists are predicting Beijing will give up its status as a financial center to Wuhan (a city on the Yangtze in central China). Many of China's financial planners concede that capital markets and securities trading can stimulate economic growth where central economic planning has failed, but Chinese officials are worried about speculation and corruption in the absence of strict government regulation. The future of economic reforms in China remains uncertain; there are rumors that Deng Xiaoping may retire after the Communist Party's national congress in 1987. THE CHINA SYNDROME 'You foreign observers talk too much about the progress that China has made towards modernisation,' complained one of the most experienced economists with the Chinese Finance Ministry, [...]
Asian Survey. Jan 1988, Vol. 28 Issue 1, p35, 17 p.
Communist Party (China) -- Conferences, meetings and seminars, International relations -- China, Legislative bodies -- Reform, Balance of trade -- Statistics, Socialism -- China, Democracy -- China, Economic development -- China, and China -- Politics and government