Cooling down growth: moves to halt excessive investment
Article Abstract:
China's government is acting to control the economic problems arising from the country's shift to a market economy. These problems include rising inflation, over-investment and worsening unemployment. Senior Vice-Premier Zhu Rongji has begun to correct this situation by exercising tighter control of the money supply. Accordingly, on May 15, 1993 the country's central bank implemented a slight boost in interest rates as a first step toward reining in inflation. The care with which the government is adjusting its economic policies indicates that it has benefited from previous errors.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Still out of control?
Article Abstract:
China's government has reacted to the instability of its four state megabanks by making financial sector reform a prime goal. The People's Bank of China has had its function as a central bank strengthened and has been rendered less vulnerable to political maneuvering. These changes suggest that China is evolving a banking system similar to Japan's. In addition, many Chinese banks have set up subsidiary finance companies to lure depositors by paying above market interest rates.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Follow the money: China faces big challenge in controlling capital flows
Article Abstract:
The Chinese government has begun a financial policy to control capital flows and stabilize economic growth. The program comes in the face of an increasing deficit in the balance of trade, declining currency reserves and concerns about capital position. The program has slowed the growth rate for the money supply, but the full economic effects of slower money growth have not resulted yet. The effort to channel capital must cope with outflows which totaled $17 billion in 1992.
Publication Name: Far Eastern Economic Review
Subject: Business, international
ISSN: 0014-7591
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Sold, at last: Indonesia's Astra group has new ownership. Away from the wheel; shares in Indonesia's Astra sold as bank totters
- Abstracts: Stalling for success: Chinese try Britain's patience on Hongkong talks. Transit van
- Abstracts: China, Taiwan vie for support of Chinese in North America. Indonesian-Chinese mobilize. Taiwan responds to China: but Lee's speech shows the gulf is as wide as ever
- Abstracts: Running battle: contenders show different styles in campaigns
- Abstracts: Pyrrhic victory: mixed fortunes for KMT chief at party congress. Back to basics: choosing next premier will be a tough job