ABSTRACT
The provincial government allocated specific tasks to different state-owned financial institutions in cleaning up the different sectors affected by the crisis. Cleaning up Guangdong’s trust and investment companies sector in its turn formed part of the massive integrated programme to clean up the whole of the province’s local financial institutions. The battle plan of the Guangdong provincial government with the support of the central government was drawn up in the face of the perilous situation in the local financial institutions. A great amount of work was required to deal with Guangdong’s twenty-five trust and investment companies, 147 urban credit cooperatives and 886 rural financial associations, as well as the network of rural credit cooperatives. The urban credit cooperatives in Shantou city in eastern Guangdong were particularly highly developed. The crisis in Guangdong’s local financial institutions took place in the context of a crisis in the country’s national state-owned banks.
