Financial Security in China: Situation Analysis and System Design

235 Pages·2016·2.806 MB·English

by  Dexu He (auth.)

Research Series on the Chinese Dream
and China’s Development Path
Dexu He
Financial
Security in China
Situation Analysis and System Design
Research Series on the Chinese Dream
’
and China s Development Path
ProjectDirector
XieShouguang,President,SocialSciencesAcademicPress
SeriesEditors
LiYang,Vicepresident,ChineseAcademyofSocialSciences
LiPeilin,Vicepresident,ChineseAcademyofSocialSciences
AcademicAdvisors
CaiFang,GaoPeiyong,LiLin,LiQiang,MaHuaide,PanJiahua,PeiChanghong,
QiYe,WangLei,WangMing,ZhangYuyan,ZhengYongnian,ZhouHong
Drawing on a large body of empirical studies done over the last two decades, the
Research Series on the Chinese Dream and China’s Development Path seeks to
provideitsreaderswithin-depthanalysesofthepastandpresent,andforecastsfor
thefuturecourseofChina’sdevelopment.ThankstotheadoptionofSocialismwith
Chinese characteristics, and the implementation of comprehensive reform and
opening, China has made tremendous achievements in areas such as political
reform,economicdevelopment,andsocialconstruction,andismakinggreatstrides
towardstherealizationoftheChinesedreamofnationalrejuvenation.Inadditionto
presenting a detailed account of many of these achievements, the authors also
discusswhatlessonsothercountriescanlearnfromChina’sexperience.Thisseries
willbeaninvaluablecompaniontoeveryresearcherwhoistryingtogainadeeper
understandingofthedevelopmentmodel,pathandexperienceuniquetoChina.
More information about this series at http://www.springer.com/series/13571
Dexu He
Financial Security in China
Situation Analysis and System Design
DexuHe
InstituteofFinanceandBanking
ChineseAcademyofSocialSciences
Beijing,China
ISSN2363-6866 ISSN2363-6874 (electronic)
ResearchSeriesontheChineseDreamandChina’sDevelopmentPath
ISBN978-981-10-0967-9 ISBN978-981-10-0969-3 (eBook)
DOI10.1007/978-981-10-0969-3
LibraryofCongressControlNumber:2016940518
©SocialSciencesAcademicPressandSpringerScience+BusinessMediaSingapore2016
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hereinorforanyerrorsoromissionsthatmayhavebeenmade.
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ThisSpringerimprintispublishedbySpringerNature
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Series Preface
SinceChina’sreformandopeningbeganin1978,thecountryhascomealongway
onthe pathofSocialism with Chinese Characteristics, under theleadership ofthe
CommunistPartyofChina.Over30yearsofreformeffortsandsustainedspectac-
ulareconomicgrowthhaveturnedChinaintotheworld’ssecondlargesteconomy,
and wrought many profound changes in the Chinese society. These historically
significant developments have been garnering increasing attention from scholars,
governmentsandthegeneralpublicalikearoundtheworldsincethe1990s, when
thenewestwaveofChinastudiesbegantogathersteam.Someofthehottesttopics
have included the so-called “China miracle”, “Chinese phenomenon”, “Chinese
experience”, “Chinese path” and the “Chinese model”. Homegrown researchers
havesoonfollowedsuit.Alreadyhugelyproductive,thisvibrantfieldisputtingout
a large number of books each year, with Social Sciences Academic Press alone
havingpublishedhundredsoftitlesonawiderangeofsubjects.
Because most of these books have been written and published in Chinese,
however, readership has been limited outside China – even among many who
study China – for whom English is still the lingua franca. This language barrier
hasbeenanimpedimenttoeffortsbyacademia,businesscommunitiesandpolicy-
makersinothercountriestoformathoroughunderstandingofcontemporaryChina,
ofwhatisdistinctaboutChina’spastandpresentmaymeannotonlyforherfuture
butalsoforthefutureoftheworld.Theneedtoremovesuchanimpedimentisboth
real and urgent, and the Research Series on the Chinese Dream and China’s
DevelopmentPathismyanswertothecall.
This series features some of the most notable achievements from the last
20yearsbyscholarsinChinainavarietyofresearchtopicsrelatedtoreformand
opening. They include both theoretical explorations and empirical studies, and
cover economy, society, politics, law, culture and ecology, the six areas in which
reform and opening policies have had the deepest impact and farthest-reaching
consequences for the country. Authors for the series have also tried to articulate
their visions of the “Chinese Dream” and how the country can realize it in these
fieldsandbeyond.
v
vi SeriesPreface
AlloftheeditorsandauthorsfortheResearchSeriesontheChineseDreamand
China’s Development Path are both longtime students of reform and opening and
recognized authorities in their respective academic fields. Their credentials and
expertise lend credibility to these books, each of which having been subject to a
rigorouspeerreviewprocessforinclusionintheseries.AspartoftheReformand
DevelopmentProgramundertheStateAdministrationofPress,Publication,Radio,
Film and Television of the People’s Republic of China, the series is published by
Springer,aGermany-basedacademicpublisherofinternationalrepute,anddistrib-
utedoverseas.IamconfidentthatitwillhelpfillalacunainstudiesofChinainthe
eraofreformandopening.
XieShouguang
Preface
ThefinancialcrisistriggeredbytheUSsubprimemortgagecrisisputtheworldon
highalert.Ordinaryinvestors,aftersufferingheavylosses,arelookingforwardto
economic recovery and financial revival. The conclusion of the false prosperity
brought on by the disordered development of the financial sector has caused
regulators to resort to strict measures, such as the introduction of “Basel III,” the
launching of systematic regulatory reforms in the USA, and major adjustments to
theUKfinancialregulatorysystem.Balancinginnovationandstability,themarket
and government, and dividing financial institutions up by type of business or
allowing them to operate diversified businesses—these are repeatedly discussed
in critiquing and reconstruction. But no matter what the conclusions, the lesson
from history is that laissez-faire financial development will inevitably result in
disastrousconsequences.Thefinancialsystemmustbesecureandstable.
Prior to the financial crisis, the Chinese rarely talked of financial security
becauseunderstrictfinancialregulationandthestrongcontrolofthegovernment,
itseemedChinesefinancewasnaturallysecure.Thelong-termrapidgrowthofthe
Chinese economy and China’s smooth experience with the Asian financial crisis
validatedthisview.Butinthemostrecentcrisis,theChineseeconomysufferedlike
any other. Foreign trade slid, economic growth fell, and under the impact of the
financial crisis, systemic contradictions began to intensify. In the context of the
continued integration of the world economy, Chinese finance cannot exist in a
vacuum. Financial difficulties in other countries pose challenges to the Chinese
financialsystem.ThisprovidesanopportunityforChinatoadjustitsunderstanding
offinancialsecurity,adjustitsthinking,andredesignfinancialsecuritymeasures,as
wellastorespondtonewtrendsintheinternationaleconomy.
This book selects typical issues in internal and external security, bank credit
“herdbehavior,”systemicstockmarketrisks,mainrisksintheinsuranceindustry,
vii
viii Preface
risksspecifictoshadowbanking,andrealestatefinancetoanalyzeChina’sfinancial
security and design an institutional framework for China’s financial security.
The author hopes to explore financial security maintenance and risk prevention
issuesinvariouseconomicpatternswiththeinternationalacademiccommunityin
ordertoprovidesupportforthesecurityoftheinternationalfinancialsystem.
Beijing,China DexuHe
Acknowledgments
Afterarelativelyshortgestationperiod,theResearchSeriesontheChineseDream
and China’s Development Path has started to bear fruits. We have, first and
foremost, the books’ authors and editors to thank for makingthis possible.And it
wasthehardworkbymanypeopleatSocialSciencesAcademicPressandSpringer,
thetwocollaboratingpublishers,thatmadeitareality.Wearedeeplygratefultoall
ofthem.
Mr.XieShouguang,presidentofSocialSciencesAcademicPress(SSAP),isthe
mastermind behind the project. In addition to defining the key missions to be
accomplishedbyitandsettingdown thebasic parametersforthe project’sexecu-
tion,astheworkhasunfolded,Mr.Xiehasprovidedcriticalinputpertainingtoits
everyaspectandateverystepoftheway.ThankstothedeftcoordinationbyMs.Li
Yanling, all the constantly moving parts of the project, especially those on the
SSAPside,aresecurelyheldtogether,andaswellsynchronizedasisfeasiblefora
projectofthisscale.Ms.GaoJing,unfailinglydiligentandmeticulous,makessure
every aspect of each Chinese manuscript meets the highest standards for both
publishers,somethingofcriticalimportancetoallsubsequentstepsinthepublish-
ing process. That high-quality if also at times stylistically as well as technically
challenging scholarly writing in Chinese has turned into decent, readable English
that readers see on these pages is largely thanks to Ms. Liang Fan, who oversees
translatorrecruitmentandtranslationqualitycontrol.
TenothermembersoftheSSAPstaffhavebeenintimatelyinvolved,primarily
inthecapacityofin-houseeditor,inthepreparationoftheChinesemanuscripts.It
istime-consumingworkthatrequiresattentiontodetails,andeachofthemhasdone
this,andiscontinuingtodothiswithsuperbskills.Theyare,inalphabeticalorder:
Mr. Cai Jihui, Ms. Liu Xiaojun, Mr. Ren Wenwu, Ms. Shi Xiaolin, Ms. Song
Yuehua, Mr. Tong Genxing, Ms. Wu Dan, Ms. Yao Dongmei, Ms. Yun Wei and
Ms.ZhouQiong.Inaddition,XieShouguangandLiYanlinghavealsotakenpartin
thiswork.
Ms.ShiXiaolinistheSSAPin-houseeditorforthecurrentvolume.
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