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The Political Economy of State Capitalism and Shadow Banking in China

The Xi-Li administration faces the dual challenge of managing state capitalism and shadow banking as China enters a phase of more moderate economic growth. During China’s first three decades of reform, private sector development occurred in parallel with prioritization of state-owned enterprises in strategic industries, and growth surged. This pattern of state capitalism rested on an unarticulated bifurcated financing arrangement whereby the formal banking system primarily served public enterprises, while private businesses relied primarily on informal finance. However, China’s response to global financial crisis disrupted the preceding equilibrium of financial dualism under state capitalism. Unprecedented expansion of bank lending after 2008 created opportunities for a host of state economic actors—including SOEs, state banks, and local governments—to expand their participation in off-balance sheet activities. Continue reading

Hong Kong Political Reform: Is ‘Chinese Democracy’ The Best The Region Can Get?

IEMS’ David Zweig spoke to the International Business Times on the prospects of Hong Kong’s electoral reform, in which each citizen would be granted a vote for the city’s next chief executive. While many Hong Kong citizens and legislators want the freedom to cast their vote for whomever they wish, the Chinese Central Government is pressuring local legislators to enact legislation which would confine potential candidates to a pool of those selected by a largely-unelected group of legislators, many of whom are thought to be extremely pro-Beijing. Continue reading

Albert Park urges abolishment of hukou in China, reports Hong Kong Economic Journal

學者批內地城市低效 信報財經新聞 兩岸消息 撰文:李澄欣 2013-11-19 ……香港科技 大學新興市場研究所所長、經濟學系教授朴之水(Albert Park)表示,此次《決定》放開落戶限制,只限於建制鎮和小城市,未惠及大城市。 他指出,戶籍制度是世上絕無僅有而不尋常的政策,造成持續的城鄉差異,應盡快廢除。朴之水指,《決定》推動大中小城市 和小城鎮協調發展,促進城鎮化和新農村建設協調推進,反映當局有意融合城鄉。 他認為,農民工遷往城市後最大難題為住房,建議當局推行農地私有化,讓農民把賣地所得資產用在城市置業。 Read the full articlehere. (Traditional Chinese only) Related Content [Bio] Albert Park [IEMS Media Coverage] … Continue reading