Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise

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Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise Page 25

by Carl E. Walter; Fraser J. T. Howie


  Lin, Zuoming

  Liu, Hongru

  Liu, Shiquan

  Liu, Zhenya

  local-government debt (see also local governments)

  amount of

  bank borrowing

  debt issues

  local financing platforms

  local governments (see also China public debt)

  2009 stimulus package

  bank borrowing

  financial resources

  financing platform means of financing

  fiscal deficit

  incorporation of government bureaus

  provincial government debt issuance

  Lou, Jiwei

  Louis Vuitton

  Lujiazui Finance & Trade Zone

  M

  Maanshan Iron & Steel

  Mao, Zedong

  Marx, Karl

  Medium-term note (MTN) (see bonds)

  Mercedes Benz

  merger and acquisition (M&A)

  Merrill Lynch

  Military Weapons Equipment Company

  Ministry of Chemicals

  Ministry of Coal Industry

  Ministry of Finance (MOF) (see also China Investment Corporation)

  1998 Special Bond

  2007 Special Bond

  bank-restructuring model

  co-managed problem-loan account

  criticism of PBOC reserve management

  IOUs

  rivalry with PBOC

  Ministry of Labor and Social Security

  Ministry of Machine-Building

  Ministry of Metallurgy

  Ministry of Petroleum

  Ministry of Posts and Telecommunications (MPT) (see also China Mobile)

  Ministry of Power

  Ministry of Railways (MOR)

  Moody’s Investors Services

  Morgan Stanley (see also investment banks)

  N

  Nanjing Public Utility Holdings Co. Ltd.

  National Association of Financial Market Institutional Investors (NAFMII)

  approval process for bond issuance

  National Champions

  as jumbo investors in IPOs

  as the government

  CEOs on Central Committee

  creation of

  overseas IPOs

  policy need for

  National Development and Reform Commission (NDRC)

  criticism of PBOC

  enterprise bonds

  opposition to MTNs

  view of commercial paper

  National People’s Congress (NPC)

  National Social Security Fund

  National Team (see also National Champions)

  net asset value

  New York

  New York Stock Exchange (NYSE)

  Ningxia

  Noble Group

  non-government organization (NGO)

  non-performing loan (NPL)

  acquisition by AMCs

  as part of public debt

  commercial auction of

  spin-off of

  trends of

  write-down of

  O

  Olympics

  Organization Department (see also Communist Party of China)

  Orient Asset Management Company (see also asset-management company)

  P

  Panzhihua Steel

  People’s Bank of China (PBOC)

  anti-inflation tools

  as sponsor of stock markets

  balance sheet

  bank-restructuring model

  deposit rate

  financial stability costs

  foreign-exchange reserves

  inflation

  local branches and Party influence

  rivalry with MOF

  short-term notes

  Special Bills

  People’s Construction Bank of China (see also China Development Bank)

  People’s Insurance Company of China

  People’s Liberation Army

  PetroChina

  underpricing of IPO

  Ping An Insurance

  Postal Savings Bank

  provincial government debt (see bonds)

  Q

  Qinghai

  Qualified Domestic Institutional Investor (QDII)

  Qualified Foreign Institutional Investor (QFII)

  R

  Red Chips

  regulators

  regulatory fiefdoms

  Super Financial Regulator

  Resolution Trust Corporation (RTC)

  loan-recovery rate

  savings-and-loan crisis

  restructuring receivables

  as percentage of bank capital

  yield vs. bonds and loans

  Rong, Yiren

  S

  SAFE Investment Corporation

  and China Investment Corporation

  Sarbanes-Oxley

  securities regulators (see China Securities Regulatory Commission)

  Shaanxi

  Shandong

  Shandong Power

  Shang Fulin

  Shanghai

  Shanghai Automotive

  Shanghai Index

  performance against RMB appreciation

  strategic investors in IPOs

  trading performance

  Shanghai Municipal Construction Investment and Development Co. Ltd.

  Shanghai Oriental Pearl

  Shanghai Outer Gaoqiao Free Trade Zone

  Shanghai Petrochemical

  Shanghai Pudong Development Bank

  Shanghai Raw Water

  Shanghai Stock Exchange (see also stock markets)

  as market for bonds

  Great Shanghai Bubble

  listed-company bonds

  rationale for establishment

  Shanghai World Expo

  Shanxi

  Shengli Oil

  Shenhua Group

  Shenyang

  Shenyang Municipal Trust & Investment Co

  Shenyin Wanguo Securities

  Shenzhen

  Shenzhen Development Bank

  Shenzhen Stock Exchange (see stock markets)

  Shi, Dahua

  Sichuan

  Sichuan Changhong

  Sinochem Group

  Sinopec

  Sinosteel

  Small and Medium-sized Enterprise Board (see stock markets)

  Soviet model

  Special Economic Zone (SEZ)

  Standard and Poor’s

  Standard Chartered Bank

  State Administration for Foreign Exchange (SAFE) (see also People’s Bank of China)

  State Committee for the Reform of the Economic System (SCRES)

  critique of state planning

  report to State Council on stock markets

  State Council

  State Council Office for Restructuring the Economic System (SCORES)

  State Development Planning Commission (SDPC) (see also SPC)

  State Economic and Trade Commission (SETC)

  State Grid Corporation of China

  State-owned Assets Supervision and Administration Commission (SASAC)

  and Organization Department

  bureaucratic classification

  compared to Huijin

  ownership of central SOEs

  scope of authority

  SOE dividend issue

  state-owned enterprise (SOE) (see also National Champions)

  Fortune 500 members

  IPO candidates

  stock speculation

  State Planning Commission

  State Power Corporation

  stock markets

  average size of IPO

  brokerage fees

  capital-raising capacity

  ChiNext Board

  comparative market capitalizations

  funds raised

  Hong Kong Stock Exchange

  hot money

  investor as speculator

  investors by category

  market capitalization by investor
<
br />   market infrastructure

  national character

  reason for

  Shanghai Stock Exchange

  share fever

  Shenzhen Stock Exchange

  Small and Medium-sized Enterprise Board (SME)

  strategic investors

  subscription lottery

  Top 10 listed companies

  underwriting fees

  Su, Shulin

  T

  Taiwan

  Tiananmen

  Tianjin

  T-Mobile

  Treasury Bonds Department

  Treaty Ports

  Tsingtao Beer

  U

  UBS

  United States Department of Treasury

  United States of America

  Urban Credit Cooperatives

  US dollar

  US Treasury

  US Treasury bond

  daily trading volume

  V

  Vodafone

  W

  Wang, Boming

  Wang, Qishan

  Wang, Xiaochu

  Wang, Yupu

  Wanguo Securities

  Washington Mutual

  Wells Fargo

  Wenzhou Lucheng Urban Credit Cooperative

  Western financial model

  Western Mining

  World Bank

  World Trade Organization (WTO)

  Fixed-asset investment

  foreign direct investment

  World War II

  Wu, Jichuan

  Wuhan

  Wuhan Waterworks Group

  X

  Xia, Yaoqing

  Xiamen International Bank

  Xiao, Gang

  Xie, Ping

  Xinjiang

  Xizhimen Hotel Conference

  Xu, Lejiang

  Y

  Yang, Kaisheng

  Yangzi River Delta

  Yantai Housing and Savings Bank

  Yanzhou Coal

  Yizheng Chemical Fiber

  Yuan, Jiajun

  Yunnan

  Z

  Zhang, Guoqing

  Zhang, Hanqiao

  Zhang, Qingwei

  Zhang, Ruimin

  Zhang, Xiaogang

  Zhejiang

  Zhou, Xiaochuan

  approach to bank restructuring

  bond markets and bank restructuring

  evaluation of bond market

  Zhu, Fulin

  Zhu, Rongji

  and Chen, Yuan

  bank restructuring policy

  character of financial-reform policy

  comment on GITIC collapse

  creation of inter-bank bond market

  and Hong Kong Stock Exchange

  Mayor of Shanghai

  Premier

  streamlining of government

  Vice Premier

  Zijin Mining

  “inside the system” as political geography

  Table of Contents

  Preface

  List of Abbreviations

  Chapter 1 : Looking Back at the Policy of Reform and Opening

  Thirty Years of Opening up: 1978–2008

  Thirteen Years of Reform: 1992–2005

  The End of Reform: 2005

  China is a Family Business

  Endnotes

  Chapter 2 : China’s Fortress Banking System

  Banks are China’s Financial System

  Crisis: The Stimulus to Bank Reform, 1988 and 1998

  China’s Fortress Banking System in 2009

  The Sudden thirst for Capital and Cash Dividends, 2010

  Endnotes

  Chapter 3 : The Fragile Fortress

  The People’s Bank of China Restructuring Model

  The Ministry of Finance Restructuring Model

  The “Perpetual Put” Option to the PBOC

  China’s Latest Banking Model

  Implications

  Endnotes

  Chapter 4 : China’s Captive Bond Market

  Why does China have a Bond Market?

  Risk Management

  The Base of the Pyramid: “Protecting” Household Depositors

  Endnotes

  Chapter 5 : The Struggle over China’s Bond Markets

  The CDB, the MOF and the Big 4 Banks

  Local Governments Unleashed

  China Investment Corporation: Lynchpin of China’s Financial System

  Cycles in the Financial Markets

  Endnotes

  Chapter 6 : Western Finance, SOE Reform and China’s Stock Markets

  China’s Stock Markets Today

  Why does China have Stock Markets?

  What Stock Markets gave China

  Endnotes

  Chapter 7 : The National Team and China’s Government

  Zhu Rongji’s Gift: Organizational Streamlining, 1998

  How the National Team, Its Families and Friends Benefit

  A Casino or a Success, or Both?

  Implications

  Endnotes

  Chapter 8 : The Forbidden City

  The Emperor of Finance

  Behind the Vermillion Walls

  An Empire Apart

  Cracks in the Walls

 

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