Debt and Distortion - Risks and Reforms in the Chinese Financial System

China's unprecedented growth hastransformed the lives of its people and impacted economies across the globe. Thefinancial system supported this growth by providing cheap loans to boostinvestment and, in a virtuous cycle, rapid growth insured that these loanscould be repaid. However, in recent years, this virtuous cycle has turnedvicious. The financial system has continued to lend freely and cheaply as theeconomy has slowed, and the risk of crisis has mounted. In response, thegovernment has initiated the most ambitious financial reforms in twenty years. Financialmarkets, businesses and governments are concerned about these risks and arestruggling to understand what the reforms will mean for China and the rest ofthe world.
Debtand Distortion: Risks and Reforms in the Chinese Financial System addresses the need for an up-to-date and accessible, yetcomprehensive analysis of China's financial system and related reforms. It willtake a systematic look at China'sfinancial system: how it worked in the pastand how it will work in the future; why reforms are needed; what risks theybring; and their impact on China and the rest of the world. By analyzing thetopic in terms of a few fundamental distortions, this book makes an otherwisecomplex topic accessible while simultaneously providing new insights. Thesedistortions provide a simple framework for understanding the nature of theChinese financial system and its future prospects.
Reform in China will transform the world'ssecond largest economy and impact everything from Peruvian copper mines to theLondon housing market. Business people, government officials, financiers andinformed citizens would all benefit from understanding how changes in China'sfinancial system will shape the global economy in the coming decades. 

List of contents

PART I. CURRENT ECONOMIC MODEL.-1. Growth model.- 2. Financial risks.-3.Financial repression.-  4. Government guarantees.- 5. International distortions.- 6. Overview.- PART II. DOMESTIC REFORMS.- 7. Banking. 8. Shadow banking.-9. Stock markets.' 10. Bond markets.- 11. Local government debt.- 12.  Real estate market.- PART III. INTERNATIONAL REFORMS.- 13. Exchange rate liberalization.- 14. Renminbi internationalization.- 15. Capital account liberalization.- 16. Asian Infrastructure Investment Bank and the New Silk Road.- PART IV. POLITICS.- 17. Political conflicts over reforms.- 18. Strategies to overcome opposition to reform.- PART V. RISKS AND CONSEQUENCES.- 19.  Domestic risks.- 20. International consequences of reform.- 21. The Future.-

About the author

Paul Armstrong-Taylor is Resident Professor
of International Economics at John Hopkins School of Advanced International
Studies, Nanjing University, China, where he teaches classes on finance,
strategy and the Chinese economy. Previously, he was Visiting Professor of
Economics and Finance at the Antai School of Economics and Management, Shanghai
Jiaotong University. His professional experience
includes positions as a consultant at Monitor Group and London Economics, and
as an investment banker at Morgan Stanley.

Paul received his BA and MPhil in Economics
from Cambridge University, and his PhD in Economics from Harvard
University.  His research interests
include the Chinese economy, game theory, business strategy and finance.  He has published numerous articles on China
and the economy for academic and non-academic media, and has spoken at a number
of events, including The China Economics Forum and the Annual US-China Business
Council Conference in Shanghai. 

Summary

China’s unprecedented growth has
transformed the lives of its people and impacted economies across the globe. The
financial system supported this growth by providing cheap loans to boost
investment and, in a virtuous cycle, rapid growth insured that these loans
could be repaid. However, in recent years, this virtuous cycle has turned
vicious. The financial system has continued to lend freely and cheaply as the
economy has slowed, and the risk of crisis has mounted. In response, the
government has initiated the most ambitious financial reforms in twenty years. Financial
markets, businesses and governments are concerned about these risks and are
struggling to understand what the reforms will mean for China and the rest of
the world.

Debt
and Distortion: Risks and Reforms in the Chinese Financial System addresses the need for an up-to-date and accessible, yet
comprehensive analysis of China’s financial system and related reforms. It will
take a systematic look at China’sfinancial system: how it worked in the past
and how it will work in the future; why reforms are needed; what risks they
bring; and their impact on China and the rest of the world. By analyzing the
topic in terms of a few fundamental distortions, this book makes an otherwise
complex topic accessible while simultaneously providing new insights. These
distortions provide a simple framework for understanding the nature of the
Chinese financial system and its future prospects.

Reform in China will transform the world’s
second largest economy and impact everything from Peruvian copper mines to the
London housing market. Business people, government officials, financiers and
informed citizens would all benefit from understanding how changes in China’s
financial system will shape the global economy in the coming decades. 

Product details

• Authors: Paul Armstrong-Taylor
• Publisher: Palgrave UK
• Languages: English
• Product format: Hardback
• Released: 25.05.2016
• EAN: 9781137534002
• ISBN: 978-1-137-53400-2
• No. of pages: 288
• Series: Springer Palgrave Macmillan
• Subjects: Social sciences, law, business > Business > Management; B, Finance, Investment Banking, Financial Services, Economics and Finance, risk management, Securities, capital market, capital markets, Public finance, Public finance & taxation, Investments and Securities, Investment & securities, Finance—History, Financial History, Finance, Public