Shadow Banking and the Rise of Capitalism in China

by Andrew Collier

This book is about the growth of shadow banking in China and the rise of China’s free markets.

Shadow Banking and the Rise of Capitalism in China

Author: Andrew Collier

Publisher: Springer

ISBN: 9811029962

Page: 205

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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?

The Handbook of Global Shadow Banking Volume II

by Luc Nijs

They identify five key characteristics of shadow banking in China,306 some
reflecting items discussed before in this ... for Financial Reform, Wiley, Surrey; A.
Collier, (2017), Shadow Banking and the Rise of Capitalism in China, Palgrave ...

The Handbook of Global Shadow Banking Volume II

Author: Luc Nijs

Publisher: Springer Nature

ISBN: 3030348172

Page: 744

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This global handbook provides an up-to-date and comprehensive overview of shadow banking, or market-based finance as it has been recently coined. Engaging in financial intermediary services outside of normal regulatory parameters, the shadow banking sector was arguably a critical factor in causing the 2007-2009 financial crisis. This second volume explores three particular domains of shadow banking. The first domain deals with the macro-economic fundamentals of the respective shadow banking segments: Why do they exist, what problems do they solve and why are some of their embedded risks so persistent? The second domain captures the global dimensions of shadow banking markets, reviewing the particularities and specifics of various shadow banking systems around the world. Volume II concludes with an extensive overview of how the sector has changed since the financial crisis, focusing on regulatory arbitrage, contract imperfection and governance. Closing on unresolved issues and open-ended questions that will no doubt remain prominent in the shadow banking sector for years to come, this handbook is a must-read for professionals and policy-makers within the banking sector, as well as those researching economics and finance.

Private Lending in China

by Lerong Lu

Practice, Law, and Regulation of Shadow Banking and Alternative Finance
Lerong Lu. Lu L. (2016) ... Walter C. and Howie F. (2011), Red Capitalism: The
Fragile Financial Foundation of China's Extraordinary Rise, Wiley. Wang Y. (2009
) ...

Author: Lerong Lu

Publisher: Routledge

ISBN: 0429823908

Page: 182

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This book explores China’s private lending market from historical, economic, legal, and regulatory perspectives. Private lending refers to moneylending agreements between business borrowers and their debt investors without the involvement of banks. In China, it remains difficult for private entrepreneurs to obtain sufficient loans from state-owned banks. Thus, private lending has been a vital alternative financing channel for over 80 million businesses which are reliant on private funds as their major source of operating capital. The market volume of private financing stands at 5 trillion yuan ($783bn), making it one of the largest shadow banking systems in the world. Despite the wide popularity and systemic importance of private lending activities, they have remained outside of the official regulatory framework, leading to extra financial risks. In 2011, China’s private lending sector encountered a severe financial crisis, as thousands of business borrowers failed to repay debts and fell into bankruptcy. Lots of bosses who found it impossible to liquidate debts ran away to hide from creditors. The financial turmoil has caused substantial monetary losses for investors across the country, which triggered social unrest and undermined the financial stability. This book is a timely work intended to demystify China’s private lending market by investigating its historical development, operating mechanism, and special characteristics. It evaluates the causes and effects of the latest financial crisis by considering a number of real cases relating to helpless investors and runaway bosses. It conducts an in-depth doctrinal analysis of Chinese laws and regulations regarding private lending transactions. It also examines China’s ongoing financial reform to bring underground lending activities under official supervision. Finally, the book points out future development paths for the private lending market. It offers suggestions for global policymakers devising an effective regulatory framework for shadow banking. It appeals to researchers, lecturers, and students in several fields, including law, business, finance, political economy, public policy, and China study.

China s Banking Transformation

by James Stent

China Banking Industry: 30 Years of Reform and Opening 1978–2008 (刘明康,
中国银行业改革开放30年: 1978–2008). Beijing: ... In Varieties of Capitalism,
Types of Democracy and Globalization, edited by Masanobu Ido. ... In China's
Rise in Historical Perspective, edited by Brantly Womack. ... Cliff Sheng, and
Jodie Hu, Bringing Light Upon the Shadow: A Review of the Chinese Shadow
Banking Sector.

Author: James Stent

Publisher: Oxford University Press

ISBN: 0190497033

Page: 304

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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.

China s Economy

by Arthur R. Kroeber

"This book is an effort to explain how China's economy got to where it is today, where it might be headed in the coming years, and what China's rise means for the rest of the world.

Author: Arthur R. Kroeber

Publisher: OUP USA

ISBN: 0190946474

Page: 464

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"This book is an effort to explain how China's economy got to where it is today, where it might be headed in the coming years, and what China's rise means for the rest of the world. It is intended to be useful to the general reader, who has an intelligent interest in China and its global impact but not necessarily a specialized background in either China or economics. Since the first edition was published in 2016 China's relevance to the world has increased dramatically, thanks to the more assertive foreign policy of president Xi Jinping and the move by the United States under the Trump Administration to treat China as a geopolitical rival. Because of its sheer size, the growing tensions with the United States, and the gulf in basic values between China and the international system it increasingly seeks to influence, understanding modern China's origins and trajectory is more important than ever. An economy is a complicated organism, which does not easily lend itself to description by narrative, as one might tell the story of a person's life. It is more like a jigsaw puzzle-to be precise, a three-dimensional jigsaw puzzle, in which the shapes of the pieces keep changing. Rather than a fixed structure like a molecule, a skyscraper, or a mathematical equation, an economy is a set of fairly solid institutions and fairly fluid arrangements created by people to enable them to get the goods and services that they want. The nature of these institutions and arrangements is largely determined by the political bargains made among the important groups in a society. As the composition, relative power, and interests of these groups change over time, so do the economic arrangements. In other words, considerations of political practicality usually trump those of economic efficiency. For economic policymakers, this means that they must make do with second- or third-best versions of their ideal recipes. For analysts, it means that describing an economy is more of a historical art than a natural science. To the extent it is a science, it is more physiology than physics"--

Can China Lead

by Regina Abrami

Reaching the Limits of Power and Growth Regina Abrami, William Kirby. 16. ... “
Shadow Banking in China: The Wenzhou Experiment,” The Economist, April 7,
2012, http://www.economist.com/node/21552228. 18. ... Louisa Lim, “China's
Capital of Capitalism Weathers Recession,” National Public Radio, March 17,
2010, ...

Author: Regina Abrami

Publisher: Harvard Business Review Press

ISBN: 142214416X

Page: 272

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It’s time to rethink the way we think about China. In this thought-provoking book, noted China experts from Harvard Business School and the Wharton School assert that while China has experienced remarkable economic growth in recent decades (nearly 10 percent for more than thirty years), it now faces major challenges—tests that could shift the country’s political and economic trajectory. A lack of accountability, transparency, and ease of operating in China—combined with growing evidence of high-level corruption—has made domestic and foreign businesspeople increasingly wary of the “China model.” These issues have deep roots in Chinese history and the country’s political system. Regina M. Abrami of the Wharton School and William C. Kirby and F. Warren McFarlan of Harvard Business School contend that the country’s dynamic private sector could be a source of sustainable growth, but it is constrained by political favoritism toward state-owned corporations. Disruptive innovation, research, and development are limited by concerns about intellectual property protection. Most significant of all is the question of China’s political future: does a system that has overseen dramatic transformations in recent years now have the capacity to transform itself? Based on a new and popular course taught by the authors at Harvard Business School, this book draws on more than thirty Harvard Business School case studies on Chinese and foreign companies doing business in the region, including Sealed Air, China Merchants Bank, China Mobile, Wanxiang Group, Microsoft, UFIDA, and others. Can China Lead? asserts that China is at an inflection point that cannot be ignored. An understanding of the forces that continue to shape its business landscape is crucial to establishing—and maintaining—a successful enterprise in China.

A History of Modern Shanghai Banking

by Zhaojin Ji

The Rise and Decline of China's Finance Capitalism Zhaojin Ji. Under the
unification of economy and finance , state banks , state - owned enterprises , and
government institutions were combined together closely . The traditional banking
... The shadow of hyperinflation from the past decade began to dissipate . The
rapid ...

Author: Zhaojin Ji

Publisher: M.E. Sharpe

ISBN: 9780765610027

Page: 325

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Selected Contents: 1. Origins of Shanghai Native Banks2. The Rise of Foreign Banks, 1847-18943. The Expansion of Foreign Banks and the Search for National Banks, 1895-19114. The Golden Age of Shanghai Banking; 1912-19275. New Foreign Financial Powers, 1911-19306. Shanghai Bankers and the Nationalist Government, 1928-19377. Wartime Banking and Finance, 1937-19458. Collapse of the Monetary System, 1945-19499. Socialist Transformation, 1949-1952

The Death of Money

by James Rickards

... System James Rickards. and Gustavo Suarez, “Bank Leverage and Monetary
Policy's Risk-Taking Channel: Evidence from the United States,” IMF Working
Paper no. WP/13/143, June ... Chapter 4: China's New Financial Warlords China
Daily, October 12, 2012, p. ... “Heirs of Mao's Comrades Rise as New Capitalist
Nobility,” Bloomberg News, December 26, 2012, ... Xiao Gang, “Regulating
Shadow Banking,” 113 “the most learned man anywhere”: Einhard, The Life of
312 - not Es.

Author: James Rickards

Publisher: Penguin

ISBN: 1101637242

Page: 384

View: 527

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The next financial collapse will resemble nothing in history. . . . Deciding upon the best course to follow will require comprehending a minefield of risks, while poised at a crossroads, pondering the death of the dollar. The U.S. dollar has been the global reserve currency since the end of World War II. If the dollar fails, the entire international monetary system will fail with it. But optimists have always said, in essence, that confidence in the dollar will never truly be shaken, no matter how high our national debt or how dysfunctional our government. In the last few years, however, the risks have become too big to ignore. While Washington is gridlocked, our biggest rivals—China, Russia, and the oil-producing nations of the Middle East—are doing everything possible to end U.S. monetary hegemony. The potential results: Financial warfare. Deflation. Hyperinflation. Market collapse. Chaos. James Rickards, the acclaimed author of Currency Wars, shows why money itself is now at risk and what we can all do to protect ourselves. He explains the power of converting unreliable investments into real wealth: gold, land, fine art, and other long-term stores of value.

Tuna Longlining by China in the Pacific Islands

by Mike A. McCoy

1.1.3 Finance The availability of capital is a necessary element in fostering
economic growth , whether by private or state owned enterprises . Finance for
large - scale industrial activities in China is mainly provided by banks , with the
largest and most important of those still ... This creates a phenomenon described
by one writer as “ shadow banks ” which , although technically illegal , operate in
a gray ...

Tuna Longlining by China in the Pacific Islands

Author: Mike A. McCoy

Publisher:

ISBN:

Page: 79

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The Oxford Handbook of Asian Business Systems

by Michael A. Witt

This required mobilizing a mass of capital and coordinating its use across many
industries, hence the collaboration of a political/bureaucratic/business ... even
more complex with the rise of families that both dominate large sectors of the
economy and send scions to the highest levels of government. ... 'China Shadow
Banking Primer', China Economic Watch, Peterson Institute for International
Economics.

The Oxford Handbook of Asian Business Systems

Author: Michael A. Witt

Publisher: OUP Oxford

ISBN: 0191626554

Page: 752

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Much of the existing literature within the "varieties of capitalism " (VOC) and "comparative business systems " fields of research is heavily focused on Europe, Japan, and the Anglo-Saxon nations. As a result, the field has yet to produce a detailed empirical picture of the institutional structures of most Asian nations and to explore to what extent existing theory applies to the Asian context. The Oxford Handbook of Asian Business Systems aims to address this imbalance by exploring the shape and consequences of institutional variations across the political economies of different societies within Asia. Drawing on the deep knowledge of 32 leading experts, this book presents an empirical, comparative institutional analysis of 13 major Asian business systems between India and Japan. To aid comparison, each country chapter follows the same consistent outline. Complementing the country chapters are eleven contributions examining major themes across the region in comparative perspective and linking the empirical picture to existing theory on these themes. A further three chapters provide perspectives on the influence of history and institutional change. The concluding chapters spell out the implications of all these chapters for scholars in the field and for business practitioners in Asia. The Handbook is a major reference work for scholars researching the causes of success and failure in international business in Asia.

by Daniel W. Drezner

“After Unipolarity: China's Visions of International Order in an Era of U.S. Decline.
” International ... Regulating Capital: Setting Standards for the International
Financial System. Ithaca ... Playing Our Game: Why China's Rise Doesn't
Threaten the West. ... Eclipse: Living in the Shadow of China's Economic
Dominance. ... “Dealing with the Banks: Populism and the Public Interest in the
Global Financial Crisis.

Author: Daniel W. Drezner

Publisher: Oxford University Press

ISBN: 0199912122

Page: 280

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International institutions, from the International Monetary Fund to the International Olympic Committee, are perceived as bastions of sclerotic mediocrity at best and outright corruption at worst, and this perception is generally not far off the mark. In the wake of the 2008 financial crash, Daniel W. Drezner, like so many others, looked at the smoking ruins of the global economy and wondered why global economic governance structure had failed so spectacularly, and what could be done to reform them in the future. But then a funny thing happened. As he surveyed their actions in the wake of the crash, he realized that the evidence pointed to the exact opposite conclusion: global economic governance had succeeded. In The System Worked, Drezner, a renowned political scientist and international relations expert, contends that despite the massive scale and reverberations of this latest crisis (larger, arguably, than those that precipitated the Great Depression), the global economy has bounced back remarkably well. Examining the major resuscitation efforts by the G-20 IMF, WTO, and other institutions, he shows that, thanks to the efforts of central bankers and other policymakers, the international response was sufficiently coordinated to prevent the crisis from becoming a full-fledged depression. Yet the narrative about the failure of multilateral economic institutions persists, both because the Great Recession affected powerful nations whose governments managed their own economies poorly, and because the most influential policy analysts who write the books and articles on the crisis hail from those nations. Nevertheless, Drezner argues, while it's true that the global economy is still fragile, these institutions survived the "stress test" of the financial crisis, and may have even become more resilient and valuable in the process. Bucking the conventional wisdom about the new "G-Zero World," Drezner rehabilitates the image of the much-maligned international institutions and demolishes some of the most dangerous myths about the financial crisis. The System Worked is a vital contribution to our understanding of an area where the stakes could not be higher.

National Mid week

by

they will have to further abuse the international credit system in " The promotion
of capitalist - oriented exchange for ... After the basic exhaustion of most Third
World countries as On the eve of the rise of the first socialist country ( the ...
Whether they remain socialista transnational corporations and banks , the Third
World countries become fully capitalist , China and ... to the extent that they are
able to improve their technology stagnation under the shadow of the International
Monetary ...

Author:

Publisher:

ISBN:

Page:

View: 507

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When Asia Meets China in the New Millennium

by Chi Lo

In particular , banks have had to set aside more capital to provide for the high bad
debt burden , thus leaving lesser ... will remain major risks to Asia's economic
growth as it moves into a new economic paradigm under the shadow of China ...

When Asia Meets China in the New Millennium

Author: Chi Lo

Publisher:

ISBN:

Page: 190

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Book Review Index

by

Author:

Publisher:

ISBN:

Page:

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Every 3d issue is a quarterly cumulation.

Reconfiguring East Asia

by Mark Beeson

2 Considerations of space preclude a detailed discussion of the rise and fall of
the bubble economy here, but for useful ... Japanese firms have moved to 3
consolidate ties with their main banks. ... 5 Indeed, the evidence is that it is
precisely those relationship based structures of Chinese business in Southeast
Asia which ... Another business group may have several subsidiaries with
overseas capital.

Author: Mark Beeson

Publisher: Routledge

ISBN: 1136856145

Page: 288

View: 928

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Focuses both on specific regional organizations like ASEAN, The Asian Development Bank and APEC, as well as on key institutions such as East Asian legal systems, the media, organized labour, Asian business systems, and the developmental state.