China has become a hot topic everywhere today. People say that it’s just a matter of time now that China will overtake the throne from the US of being the biggest economy in the world. The truth is that, if the Chinese financial market collapse today, the financial markets all over the world will be dragged down with it tomorrow. Therefore it’s a very necessary and yet interesting to study the real picture inside China’s fast growing economy. The purpose of the thesis will be to describe the Chinese Bank Industry and its essential parts, which are the governmentowned banks, the shadow banks and at last the upcoming private banks. It has been known for many years that China had a government owned financial market, yet now it is allowing privately owned enterprises to open banks. How will the private banks affect the Chinese Bank Industry? Will they be able to compete with the government owned banks? These are the questions that will be answered here. This thesis starts with the banking history in China from hundreds of years ago until the 21st century. It describes in detail how China becomes one of the top economies in the world within 40 years, and illustrates a clear picture of the nowadays Chinese Bank Industry. It will also define Chinese Shadow Banks, as it is somehow different from the ones known from Europe or North America; and find out more about the private banks, and how they will benefit to the unsolved SME-financing problem in China. Since the subprime crisis from 2008, the world economy is still in recovery. Therefore will this thesis also study that, will the high level debt the Chinese government and the local governments have, together with the potential real estate bubble, result in another financial crisis? Though the answer can never be certain to this kind of questions, the study shows somehow that the Chinese government might have its way to prevent it.
|Educations||MSc in Finance and Accounting, (Graduate Programme) Final Thesis|
|Number of pages||98|