China's Emerging Financial Markets Challenges and Opportunities

China’s emerging financial markets reflect the usual contrast between the country’s measured approach toward policy, regulatory, and market reform, and the dynamic pace of rapid economic growth and development. But they also offer unusual challenges and opportunities. In the past five years, the pace of opening and reform has accelerated sharply. Recapitalization and partial privatization of the largest banks, and the allowance of some joint venture and branch operations for foreign financial institutions, are making rapid headway in developing and expanding financial services and improving access to domestic business and households. This book provides the most extensive look available at the evolving Chinese financial system. It begins with alternative perspectives on the evolution of the financial system and the broad outlines of its prospects and potential contribution to economic growth. Three articles review broad aspects of the financial system. Franklin Allen, Jun ‘‘QJ’’ Qian, Meijun Qian, and Mengxin Zhao lead off with overviews of the banking system and performance of the equity market and other institutions.

Section 1 Overview of the Chinese Financial System.- A Review of China’s Financial System and Initiatives for the Future.- The Transformation of China from an Emerging Economy to a Global Powerhouse.- China’s Financial Sector: Contributions to Growth and Downside Risks.- Section2 Monetary Policy and the Foreign Exchange Market.- Monetary Policy Implementation in China: Past, Present, and Prospects.- The China Monetary Policy Handbook.- The RMB Debate and International Influences on China’s Money and Financial Markets*.- The United States–China Currency Dispute: Is a Rise in the Yuan Necessary, Inevitable, or Desirable?.- New Estimation of the Renminbi Regime.- The Chinese Imbalance in Capital Flows.- Some Issues Regarding China’s Foreign Reserves.- Section 3 The Banking System.- Institutional Development, Ownership Structure, and Business Strategies: A New Era in the Chinese Banking Industry.- China’s Nonperforming Loans: A $540 Billion Problem Unsolved.- The Evolution of Bank Lending Patterns in China: A Post-1994 Province-By-Province Analysis.- Determinants of Location Choice of Foreign Banks Within China: Evidence from Cities.- Financial Institutions’ Lending and Real Estate Property Prices in China.- Combating Financial Exclusion in China: A Banking Regulatory Perspective.- Section 4 The Bond and Equity Market.- The Chinese Bond Market: Historical Lessons, Present Challenges, and Future Perspectives.- An Update on China’s Capital Markets: Focus on China’s Securities Industry.- Privatization in China: Experiences and Lessons.- The Emergence of Shareholder Protection in China.- An Appraisal of the Impacts of Non-tradable Shares Reform on Large Shareholders’ Behavioral Modes of Listed Companies in the A-Share Market.- Will China Surpass the UnitedStates?.

James R. Barth,  his research focuses on financial institutions and capital markets, both domestic and global, with special emphasis on regulatory issues. He recently headed up an international team advising the People’s Bank of China on financial reform.

John A. Tatom, has more than 30 years of research and management experience in domestic and international financial markets and monetary policy, including as a Federal Reserve official and policy adviser, and head of emerging market research and country risk for an international bank. His research focuses on policy and influences on international capital markets and economic capacity.

 Glen Yago, specializes in financial innovations, financial institutions and capital markets, and has extensively analyzed public policy and its relation to high-yield