ABSTRACT
The widely held view of the Asian Financial Crisis (AFC) is that it had no substantial impact on China. The impact of the AFC was first through financial inflows from, and debts incurred in, Hong Kong, especially through Guangdong-based financial institutions operating there. In particular, what contribution should global financial flows and financial institutions make to China’s development in the period ahead? In December 1997 it was announced that Wang Qishan would relinquish his position as the Governor of China Construction Bank and take up a leading position in the Guangdong provincial government. International bankers had wished to believe that Guangdong International Trust and Investment Company was protected from bankruptcy by the Chinese government. The declared intention of the Chinese government was to turn Guangdong Enterprises into a modern company that conformed to international standards of business management. The chapter also presents an overview of the key concepts in this book.
