Financial Sector Reform in China

China has initiated its economic and financial reform since the early 1980s, tremendous progress has been made in terms of keeping high economic growth rate, increasing revenue and improving people’s living status during the last two decades. The financial sector reforms, mainly instituted in 1993-1994, have tried to rectify the financial sector to solve some of the problems emerged during the reform process such as “ too fast and too hot economy growth ” in order to maintain a healthy economic development. The financial sector reforms seem successful according to the report by the Ministry of Finance. A stable financial revenue mechanism has been set up; the average annual GDP growth rate was beyond 8 % in 1996-2000. The GDP achieved 8,900,000 million yuan and the financial revenue reached 1,338,000 million yuan in 2000, the average growth speed of financial revenue during 1996-2000 was 16.5%, which is the best period in the history.[1] Paralleled with the economic and financial reform, health sector in China has experienced vast reforms and changes. Large progresses have been made in terms o