ABSTRACT
Some of the most radical changes in the move from a centrallyplanned to a market economy are taking place in the financial sector. The government is overhauling its entire fiscal and monetary policy, and a new legal structure is being created to provide the necessary back-up. This chapter will look at:
Moves to strengthen the powers of the central bank, the People's Bank of China (PBOC).
The transformation of the four specialized banks – who work closely with the PBOC and government in carrying out State policy – into commercial ones.
The creation of new banks to take over the specialist role in high-risk, low-profit State projects.
Moves to create a new interest rate structure related to market needs.
The role of foreign banks in China.
How foreign businesses can obtain loans from Chinese banks.
Raising capital via the stock market.
The creation of a vast network of futures markets across the country.
