Capitalizing China

Capitalizing China

Joseph P. H. Fan and Randall Morck

Print publication date: 2013

ISBN: 9780226237244

Publisher: University of Chicago Press

Abstract

China's economic boom over the last two decades has taken many analysts by surprise, given the ongoing role of central government planning. China's current growth trajectory suggests that the size of its economy could soon surpass that of the United States. Some argue that continued growth and the expanding middle class will ultimately exert pressure on the government to bring about greater openness of the financial market. To better understand China's recent economic performance, this book examines the distinctive system it has developed: “market socialism with Chinese characteristics.” While China's formal institutional makeup resembles that of a free-market economy, many of its practices remain socialist, including strategically placed state-owned enterprises that wield influence both directly and through controlled business groups, and Communist Party cells whose purpose is to maintain control of many segments of the economy. China's economic system, the contributors find, also retains many historical characteristics that play a central role in managing the economy. These and other issues are examined in chapters on China's financial regulations, corporate governance codes, bankruptcy laws, taxation, and disclosure rules.

Table of Contents

I Financial System and Its Governance

2 China’s Financial System

Franklin Allen, Jun “QJ” Qian, Chenying Zhang, and Mengxin Zhao

II Governance of Stock Markets

III Capital Accumulation

5 Why Are Saving Rates So High in China?

Dennis Tao Yang, Junsen Zhang, and Shaojie Zhou

6 The Chinese Corporate Savings Puzzle

Bayoumi Tamim, Hui Tong, and Shang-Jin Wei

IV Public Finance

8Provincial and Local Governments in China

Roger H. Gordon and Wei Li