chapter  6
Dilemma of property rights under the state-owned financial system and the path of solution
ByJie Zhang
Pages 31

This chapter establishes the credit equilibrium model and the dual model of bad debts for state-owned banks, unveils the special connotation of bad debts of state-owned banks and the internal logical connection between these bad debts and the gradual reform and then analyzes the contradiction between the division of state-owned financial property rights and the indispensability of state guarantee. It also explains the high cost and the property right barrier found in the solution of capital injection based on the dual capital injection of debts of the state-owned economy during economic reform.