Jump to ContentJump to Main Navigation
The Oxford Companion to the Economics of China$
Users without a subscription are not able to see the full content.

Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 19 October 2018

How can China’s financial system help to transform its economy?

How can China’s financial system help to transform its economy?

Chapter:
(p.217) 33 How can China’s financial system help to transform its economy?
Source:
The Oxford Companion to the Economics of China
Author(s):

Franklin Allen

Jun ‘QJ’ Qian

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199678204.003.0034

This chapter discusses how the financial system can help transform the Chinese economy from a state-led, investment intensive, export-oriented economy into one that relies more on domestic consumption and private sector production. There are five main goals for the next decade: First, more funding is required to support the growth of hybrid sector firms. Second, more financial products and markets are needed to provide a diversified basket of investment products for households and firms. Third, private equity (PE) and venture capital (VC) sectors should be developed to fund innovation and new industries. Fourth, non-bank financial institutions must grow to fund social safety net programmes, and local governments should be able to raise funds through bond markets. Finally, China should try to prevent severe financial crises such as a banking sector and/or market crash and also expand the Renminbi (RMB) as a major international reserve currency so as to balance global capital flows.

Keywords:   Chinese economy, domestic consumption, economic reform, economic policies, financial policies

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .