China’s Financial System: Growth and Inefficiency

199 Pages·2017·2.37 MB·English

by  Dominique De Rambures, Felipe Escobar Duenas (auth.)

China’s
Financial
System
Growth
and
Inefficiency
Dominique de Rambures
and Felipe Escobar Duenas
China’s Financial System
Dominique De Rambures • Felipe Escobar Duenas
China’s Financial
System
Growth and Inefficiency
Dominique De Rambures Felipe Escobar Duenas
Master Banque Finance Master Banque Finance
Paris I University Panthéon Sorbonne Paris I University Panthéon Sorbonne
Paris, France Paris, France
ISBN 978-3-319-40450-9 ISBN 978-3-319-40451-6 (eBook)
DOI 10.1007/978-3-319-40451-6
Library of Congress Control Number: 2017930599
© The Editor(s) (if applicable) and The Author(s) 2017
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
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Cover Design: Liron Gilenberg
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Contents
1 Introduction 1
2 China’s Decision Making System 5
3 A Non-Independent Central Bank 21
4 Chinese Banks: Between Control and Profitability 37
5 Sidelined Foreign Banks 63
6 Credit Black Market 75
7 Fast Growing Internet Banking and Finance 91
8 Government Controlled Financial Institutions 101
9 Under-developed Financial Markets 131
v
vi Contents
10 An International Non-Convertible Currency 163
11 Conclusion 179
Bibliography 183
Index 187
List of Abbreviations and Acronyms
ABC Agricultural Bank of China
ADA Abu Dhabi Investment Agency
ADB Asia Development Bank
AIIB Asia Infrastructure Investment Bank
AMC Asset Management Company
ANZ Australian & New Zealand Bank
APEC Asia Pacific Economic Cooperation
AVIC Aviation Industry Corp.
B2B Business-to-Business
BBVA Banco de Bilbao Viscaya Argentaria
BEIC British East India Company
BMG Beijing Municipal Government
BOC Bank of China
BOCOM Bank of Communications
BRICS Brazil, Russia, India, China, South Africa
C2C Consumer-to-Consumer
CBRC China Banking Regulatory Commission
CCB China Construction Bank
CCP Chinese Communist Party
CCT China Credit Trust
CD Certificate of Deposit
CDB China Development Bank
vii
vviiiiii List of Abbreviations and Acronyms
CEXIM China Export and Import Bank
CIBIC Commercial and Industrial Bank of China
CIC China Investment Corp.
CICC China International Capital Corp.
CIDM China Insurance Deposit Mechanism
CIRC China Insurance Regulatory Commission
CITIC China International Trust and Investment Corp.
CNAPS China National Advanced Payment System
CNCC China National Nuclear Corp.
CNIG China National Investment & Guarantee Co Ltd
CNPC China National Petroleum Corp.
COSCO China Ocean Shipping Cy.
CP Group Chaoren Pokphand Group
CPB Consumer Protection Bureau
CPIC China Power Industrial Corp.
CSI China Shipbuilding Corp.
CSPG China Southern Power Grid
CSRC China Securities Regulatory Commission
CSSC China State Shipbuilding Corp.
DVP Delivery versus Payment
ECB European Central Bank
EFT Exchange Traded Fund
EM Europay
EMS European Monetary System
FCPB Financial Consumer Protection Bureau
FDI Foreign Direct Investment
FSA Financial Supervision Agency
FSR IMF Financial Stability Report
FTAAP Free Trade Area of Asia Pacific
GITIC Guangdong Investment and Trust Company
Guotai Guotai Junan Securities Co.
HKE Hong Kong Securities Exchange and Clearing Ltd
HKMA Hong Kong Monetary Authority
HKSE Hong Kong Stock Exchange
HKSFE Hong Kong Securities and Futures Commission
HPVS High Value Payment System
List of Abbreviations and Acronyms iixx
HSBC Hong Kong and Shanghai Bank Co.
HUIJIN Central Huijin Investment Co.
IBRD International Bank for Reconstruction and Development
IBOC International Bank of China
ICBC Industrial and Commercial Bank of China
IFC International Finance Company
IIBA Infrastructure Investment Asian Bank
IMF International Monetary Fund
IPO Initial Public Offering
Jiany China Jiany Investment Ltd.
KKR Kohlberg Kravis Robert
LGFVs Local Government Financing Vehicles
LME London Metal Exchange
MDE Mainland Designated Companies
MOF Ministry of Finance
MOR Ministry of Railways
MSCI Morgan Stanley Commodity Index
NASDAQ National Association of Securities Dealers Automated
Quotation
NCSSF National Council of Social Security Fund
NDB New Development Bank
NDRC National Development and Reform Commission
NSSF National Social Security Fund
NYSE New York Stock Exchange
P2P Peer-to-Peer (or Person-to-Person)
PBOC People’s Bank of China
PICC People’s Insurance Company of China
PMC Party Military Commission
PSBC Postal Savings Bank of China
PwC Price WaterhouseCoopers
QFII Qualified Foreign Institutional Investors
QIA Quatar Investment Agency
RBS Royal Bank of Scotland
RDSC Research Department of the State Council
ROE Return on Equity
RQFII Renminbi Qualified Foreign Institutional Investors
xx List of Abbreviations and Acronyms
RTGS Real Time Gross Settlement System
SAFE State Agency of Foreign Exchange
SAMA Saudi Arabia Monetary Agency
SASAC State Owned Asset Supervision and Administration
Commission
SCO Shanghai Cooperation Organization
SDR Special Drawing Rights
SEA Special Economic Area
SEC Security and Exchange Commission
SEZ Special Economic Zone
SIC Government of Singapore Investment Corp.
SMEs Small and Medium-sized Enterprises
SOE State Owned Enterprise
SSE Shanghai Stock Exchange
SWF Sovereign Wealth Fund
SWIFT Society for Worldwide Interbank Financial
Telecommunication
TIC Trust and Investment Company
TPG TPG Capital fund (ex Texas Pacific Group)
TPP Trans Pacific Partnership
TVE Township & Village Enterprise
WMP Wealth Management Products
WTO World Trade Organization