Facoltà: Economia Aziendale
Collocazione: 3965
Autore: Cucconi Nicola
Data: 27/04/2005
Titolo: THE CHINESE FINANCIAL MARKET: TRANSITION TO A MARKET ECONOMY
Relatore: Gervasoni Anna
Correlatore: Sartori Massimiliano
Autorizzazione per la consultazione: NO
Le tesi si possono consultare unicamente in sede
This paper looks at the features of financial markets in China, namely focusing on the banking sector and on the stock exchange. The essay puts forward selected financial facts and policies, it analyses them, and it discusses their relevance in the particular context of China’s economic development goals. To understand the Chinese financial system, it is important to underline the Chinese financial development in terms of financial and monetary policy. The problem of non performing loans in its banking sector is given much attention, being a potential threat for its financial system and economy. Then the capital market will be analyzed and even though the stock market has experienced tremendous growth and development in the recent years, it’s still in the early stages of development. In fact it’s characterised by short-termism, so that a high speculation is very widespread throughout China’s stock market. The fundamental idea is that the investing environment of China’s stock market simply does not encourage long term investment strategies. Moreover the stock market lacks an OTC market and a derivatives market. The paper outlines the important reforms that have affected the financial sector, and focuses on the repercussion of the followings for the Chinese economy. Finally it points out some problems with the current Chinese situation and suggests some potential solutions, in the hope of fostering China to preparation for the rigors of exposure to the international financial markets also due to the China’s access to WTO. It concludes that although the Chinese financial system is not developed according to the standards of industrialized countries, financial intermediation has been efficient in terms of promoting savings and credit to the extent that might have been good enough to facilitate economic growth. China is still a transitional economy, so some features of the planned economy still remain. There are political manipulations that reflect a policy choice rather than a market choice, and thus the market cannot perform its functions fully.
