: Annette Kleinbrod
: The Chinese Capital Market Performance, Parameters for Further Evolution, and Implications for Development
: DUV Deutscher Universitäts-Verlag
: 9783835092600
: 1
: CHF 47.90
:
: Betriebswirtschaft
: English
: 435
: Wasserzeichen/DRM
: PC/MAC/eReader/Tablet
: PDF
Annette Kleinbrod analyses the Chinese capital market and examines to what extent the stock and bond markets contribute to the financing of China's development. Her approach takes into account the relatively recent re-emergence of the stock and bond markets in China, the limited data available, and the country's current dynamics.

Dr. Annette Kleinbrod promovierte bei Prof. Dr. Erich Priewasser am Lehrstuhl für Allgemeine Betriebswirtschaftslehre und Bankbetriebslehre an der Universität Marburg. Sie ist als Projektmanagerin China für GTZ International Services tätig.
2 The Significance of Effective Development in China (S. 5-6)

In conjunction with development, assuring stability (wendingf and welfare (fuli) have been viewed as imperatives by rulers throughout Chinas history and remain so in the rationale of the Chinese Communist Party, which has had to contend not only with social disorder, but also with loss of credibility during periods of its reign. With these imperatives in mind, the Chinese government initiated an unprecedented path of reform in 1978 which has had a substantial impact on literally every aspect of society as well as the countrys foreign relations. Viewed pragmatically, this has brought about the worlds fastest growing economy and has at the same time - when evaluated in the overall perspective - yielded substantial material benefits for its population. However, the road towards development remains fragile.

It presents significant economic and political challenges and also has troubling implications for both society and the natural environment. These are by no means insurmountable obstacles, but they need to be overcome. Successful economic growth is considered to be the pivotal means necessary to guarantee social stability and welfare, but more recently the government has also increasingly acknowledged the need to incorporate aspects related to quality and sustainability into its growth targets. An effective understanding of Chinas financing needs during the course of its further development, as well as the role of the capital market and its correlation with the developmental process, requires insight into central issues related to stability and welfare that are recurring themes throughout Chinas history and continue to this date. This will be presented for the era leading up to 1978 (Chapter 2.1) and the present reform period (Chapter 2.2) in order to allude to those patterns which are of importance for future development. Concluding passages will analyse significant challenges for and the critical task of financing the forthcoming development path (Chapter 2.3).

2.1 Stability and Welfare as Governance Maxims throughout the Millennia

Generally speaking, hindsight allows for a deeper understanding of development patterns, including the inherent strengths and weaknesses. This is an indispensable basis for anticipating future challenges and opportunities and particularly useful when trying to evaluate Chinas performance, especially considering that the country ranked amongst the most advanced nations in the world until the Song Dynasty (960-1279), when it entered a long period of stagnation, economically and otherwise, before entering a remarkable phase of revitalisation, which began with the start of sweeping reforms in 1978. It remains to be seen to what extent the recent achievements can in fact be sustained in the long run. This chapter first addresses three major historical facets of the approach towards development which continue to have an important impact on development processes (Chapter 2.1.1) and then analyses the performance actually achieved until 1978 (Chapter 2.1.2).

2.1.1 Momentous Historical Occurrences

Three significant aspects of development that occurred within Chinas 3,000 year history are depicted here in order to show the degree to which historical processes are still of major relevance for an effective development in China today, , namely (i) early efforts to foster stability and welfare and establish an institutional framework with particular regard to the specific situation in China, (ii) Chinas encounters with western nations from the nineteenth century onwards, and (iii) the establishment of the Peoples Republic of China, a form of communist-based governance which continues, to this date, to display distinctly Chinese characteristics.
Acknowledgements5
Table of Contents7
List of Tables17
List of Abbreviations19
General Notes21
1 Introduction22
2 The Significance of Effective Development in China26
2.1 Stability and Welfare as Governance Maxims throughout the Millennia27
2.1.1 Momentous Historical Occurrences27
2.1.2 From Sophisticated Power to Stunted Performance31
2.2 China's Development Since 197835
2.2.1 Stability and Welfare Throughout the Course of the Reform Period36
2.2.2 A Note on Conduct to Imminent Instability38
2.2.3 Unequalled Achievements in Regaining Momentum41
2.3 Considerations for the Future Path of Development47
2.3.1 A Broad Array of Challenges48
2.3.2 The Paramount Importance of the Financial System50
3 The Connection Between the Capital Market and Development54
3.1 General Aspects of Financial System Design55
3.1.1 Resuming the Bank-based Versus Market-based Debate56
3.1.2 Limited Applicability of an Overall Concept of Efficiency58
3.1.3 Principle of Dynamism and Evolutionary Capability60
3.2 The Finance-Growth and Finance-Development Link in Theory and Empiricism62
3.2.1 Theoretical Concepts63
3.2.2 Empirical Studies64
3.3 Resulting Research Method68
3.3.1 Fundamental Features of the Development Structure69
3.3.2 Overview of the Role of the Capital Market in Effective Development75
3.3.3 A Functional Perspective as a Starting Point77
3.3.4 Evaluating the State of the Capital Market91
3.3.5 Parameters Influencing the Capital Market93
4 The Current Performance of the Chinese Capital Market99
4.1 Rationale for the Stock and Bond Markets' Re-emergence Since the 1980s100
4.2 The Stock Market Segment102
4.2.1 Relevance of the Stock Market in Raising Capital103
4.2.2 Particularities as to the Differentiation into Diverse Share Categories105
4.2.2.1 Shares of Companies Incorporated in China106
4.2.2.2 Shares of China-related Companies Incorporated Outside China112
4.2.2.3 Market Segmentation in Transition114
4.2.3 Companies Quoted on Domestic Stock Exchanges120
4.2.4 Investors in Domestic Stock Exchanges137
4.2.5 Data on Stock Market P