ABSTRACT
Chapter 1 shows how the remarkable transformation of China’s banking system since the establishment of the socialist market economy has been mischaracterised by the orthodox view of reform. The evolution of China’s banking sector should not be viewed as conformance with a single theoretical framework, based on a neoliberal economic system. It argues that change in China’s banking sector should instead be viewed as an evolution of institutions which reflect historical patterns of political and economic organisation in China. These institutions explain the focus of China’s officials on developing a system of market regulation which could ensure financial stability.
