The Rise of the People's Bank of China


Book Description

The People’s Bank of China surpasses the Federal Reserve as the world’s biggest central bank. In the first comprehensive account of the evolution of central banking and monetary policy in reform China, Stephen Bell and Hui Feng show how the PBC’s authority grew from a Leninist party-state that once jealously guarded its control.




Banking on Growth Models


Book Description

Banking on Growth Models contends that China's rapid economic rise from the late 1970s to today has been built on and shaped by a highly politicized and inefficient bank-centric financial system. Stephen Bell and Hui Feng argue that if the Chinese growth model drives how key economic sectors interact, no amount of incremental reform can have much impact on the financial system—meaningful reform can stem only from a revised growth model. For a time after the global financial crisis, it appeared that the expansion of a more market-oriented shadow banking system might help sustain China's economic growth. Since around 2015, however, Xi Jinping's regime has reversed this trajectory and placed China's financial system under heavy state control, resulting in slowed economic development and skyrocketing national debt. China's market transition and economic rebalancing are now in doubt, as is the fate of the nation's economy. By pinpointing finance as a vital element of the growth model, Bell and Feng provide a convincing assessment of financial risks and the prospects for economic rebalancing in China. Banking on Growth Models demystifies the world of Chinese banking and finance as it investigates an ever-rising national debt, a declining rate of economic growth, and the possibility of dire and drastic reform by the Asian superpower's government.




The People’s Money


Book Description

Many of the world's major economies boast dominant international currencies. Not so for China. Its renminbi has lagged far behind the pound, the euro, and the dollar in global circulation—and for good reason. China has long privileged economic policies that have fueled development at the expense of the renminbi's growth, and it has become clear that the underpowered currency is threatening China's future. The nation's leaders now face the daunting task of strengthening the currency without losing control of the nation's economy or risking total collapse. How are they approaching this challenge? In The People's Money, Paola Subacchi introduces readers to China's monetary system, mapping its evolution over the past century and, particularly, its transformation since Deng Xiaoping took power in 1978. Subacchi revisits the policies that fostered the country's economic rise while at the same time purposefully creating a currency of little use beyond China's borders. She shows the key to understanding China's economic predicament lies in past and future strategies for the renminbi. The financial turbulence following the global crisis of 2008, coupled with China's ambitions as a global creditor and chief economic power, has forced the nation to reckon with the limited international circulation of the renminbi. Increasing the currency's reach will play a major role in securing China's future.




A History of Modern Shanghai Banking: The Rise and Decline of China's Financial Capitalism


Book Description

As the center of capitalism in China, Shanghai banking provides a unique perspective for assessing the impact of the changes from financial capitalism to socialist planning banking in the early 1950s, and for evaluating the reform of China's banking system since the 1980s. This book offers a comprehensive history of Shanghai banking and capital markets from 1842 to 1952, and illustrates the non-financial elements that contributed to the revolutionary social and financial changes since the 1950s, as well as financial experiences that are significant to China's economic development today. The book describes the rise and fall of China's traditional native banks, the establishment of foreign banks, and the creation of modern state banks, while focusing on the colorful world of banking, finance, and international relations in modern Shanghai. It assesses the Chinese government's intervention in banking and finance during the Qing dynasty and the Republican era, as well as the concept of state capitalism after the establishment of the People's Republic. The author examines various modern-style Chinese banks through fascinating stories of Shanghai bankers. In addition, she provides detailed coverage of market-oriented international trade, banking associations, the conflicts between state and society, the government involvement in business, the management of foreign exchange, joint venture banks, wartime banking and finance, hyperinflation, corruption, and banking nationalization.




People's Bank of China


Book Description

We provide a comprehensive review of the development and activities of the People's Bank of China over the half century. First, the PBC has evolved from the mixture of a central bank and a commercial bank to the central bank of China, with the status legally confirmed in 1995. Although the mandates of the PBC have altered slightly over the past decades, the monetary policy has continuously met challenges in different stages of economic development. Second, in order to reach the objectives of economic growth and stable prices, the PBC does not operate in a single instrument environment, but employs a variety of policy instruments including price-based, quantity-based and administrative policy measures. Third, the PBC has been promoting financial reforms actively and playing a key role of regulation during special episodes such as the credit crunches in 2013, which has led to the rapid development of financial systems and may further contribute to the economic growth and help balance the growth in different economic sectors.




Long-Term Commitment, Trust and the Rise of Foreign Banking in China


Book Description

The rapid growth of foreign banks has aroused a growing interest in the academic field and specifically as regards to the question of why foreign banks exist. This book aims to establish the relationship between trust as contextual knowledge capital built between the Chinese government and foreign banks and foreign banks. knowledge capital and the relationship between the former and foreign banks. long-term commitment. By investigating the development strategy of foreign banks and by examining and explaining the importance of foreign banks. long-term commitment to their development, this book has demonstrated that foreign banks established branches in China not only to follow their home-country customers in order to retain their knowledge capital but also to gain market access. Trust as contextual knowledge capital built between foreign banks and the Chinese government could assist their knowledge capital retention and their market access strategy. Foreign banks. long-term commitment could help them to achieve this contextual knowledge capital. This book thus has major implications for the development strategy of foreign banks in a government-oriented economy with a controlled banking sector. The first book covering the relationship between the governments trust and support and the rise of foreign banks in China Few studies have analysed the development of foreign banks from the standpoint of government, i.e. the supply side of the banking licence, and the relationship between the development of foreign banks and the trust built between foreign banks and the government The first book showing how some big foreign banks in China, such as HSBC, built relationship with the Chinese government




In Line Behind a Billion People


Book Description

The authors set out each of the scarcities that could limit China's power and stall its progress. Beyond scarcities of natural resources and public goods, they explore China's persistent poverties of individual freedoms, institutions, and ideological appeal--and the corrosive loss of values among a growing middle class shackled by a parochial and inflexible political system.




Urban China


Book Description

In the last 30 years, China’s record economic growth lifted half a billion people out of poverty, with rapid urbanization providing abundant labor, cheap land, and good infrastructure. While China has avoided some of the common ills of urbanization, strains are showing as inefficient land development leads to urban sprawl and ghost towns, pollution threatens people’s health, and farmland and water resources are becoming scarce. With China’s urban population projected to rise to about one billion – or close to 70 percent of the country’s population – by 2030, China’s leaders are seeking a more coordinated urbanization process. Urban China is a joint research report by a team from the World Bank and the Development Research Center of China’s State Council which was established to address the challenges and opportunities of urbanization in China and to help China forge a new model of urbanization. The report takes as its point of departure the conviction that China's urbanization can become more efficient, inclusive, and sustainable. However, it stresses that achieving this vision will require strong support from both government and the markets for policy reforms in a number of area. The report proposes six main areas for reform: first, amending land management institutions to foster more efficient land use, denser cities, modernized agriculture, and more equitable wealth distribution; second, adjusting the hukou household registration system to increase labor mobility and provide urban migrant workers equal access to a common standard of public services; third, placing urban finances on a more sustainable footing while fostering financial discipline among local governments; fourth, improving urban planning to enhance connectivity and encourage scale and agglomeration economies; fifth, reducing environmental pressures through more efficient resource management; and sixth, improving governance at the local level.




Shadow Banking and the Rise of Capitalism in China


Book Description

This book is about the growth of shadow banking in China and the rise of China’s free markets. Shadow Banking refers to capital that is distributed outside the formal banking system, including everything from Mom and Pop lending shops to online credit to giant state owned banks called Trusts. They have grown from a fraction of the economy ten years ago to nearly half of all China’s annual Rmb 25 trillion ($4.1 trillion) in lending in the economy today. Shadow Banks are a new aspect of capitalism in China – barely regulated, highly risky, yet tolerated by Beijing. They have been permitted to flourish because many companies cannot get access to formal bank loans. It is the Wild West of banking in China. If we define capitalism as economic activity controlled by the private sector, then Shadow Banking is still in a hybrid stage, a halfway house between the state and the private economic. But it is precisely this divide that makes Shadow Banking an important to the rise of capitalism. How Beijing handles this large free market will say a lot about how the country’s economy will grow – will free markets be granted greater leeway?




Economy of the Peoples Republic of China


Book Description

Today, China’s economy is behaving in a rather similar way to most other countries. This is true even after the government’s influence on industry which in some sectors is similar to what we see in some European countries such as France. China uses the same measurement yardsticks for GDP, foreign trade, inflation, industrial output, etc. as almost every other country. As such, comparisons are possible and called for. The People’s Republic of China (PRC) is the world’s second largest economy by nominal GDP and by purchasing power parity after the United States. It is the world’s fastest-growing major economy, with growth rates averaging 10%over the past 30 years. China is also the largest exporter and second largest importer of goods in the world. On a per capita income basis, China ranked 90th by nominal GDP and 91st by GDP (PPP) in 2011, according to the International Monetary Fund (IMF). The provinces in the coastal regions of China tend to be more industrialized, while regions in the hinterland are less developed. As China’s economic importance has grown, so has attention to the structure and health of the economy. Growth in the People's Republic of China's restructuring economy continued to decelerate in 2016, but the government ensured stability through targeted fiscal and monetary support. Inflation started to rise, and the current account surplus narrowed but remained sizeable. These trends will continue in 2017 and 2018. Structural reform needs to be accelerated to boost productivity and sustain growth as outlined in the current 5-year plan. As the book addresses this crucial issue quite deftly, it is hoped that it would prove to be a source of great information for the reader.