chapter  5
Transitional arrangements of the financial system
ByJie Zhang
Pages 24

This chapter attempts to answer the question of why financial arrangements during the gradual reform of China are capable of mobilizing such a huge amount of financial resources, particularly household savings. The core proposition is that the state-owned financial arrangement features comparative advantages in mobilizing household savings under the transitional economy and therefore becomes the necessary financial institutional arrangement for the sake of the success of economic reform in China.