A study of trust and investment companies in China.

by Siu Ngar-Yin Diana, Wong Fung-Yu Eve.Thesis (M.B.A.)--Chinese University of Hong Kong, 1999.Includes bibliographical references (leaves 60-61).ABSTRACT --- p.iiTABLE OF CONTENT --- p.ivACKNOWLEDGEMENT --- p.viChapterChapter I. --- INTRODUCTION --- p.1Objective --- p.1Methodology --- p.2Chapter II. --- HISTORICAL OVERVIEW OF FINANCIAL REFORMS (1979-1992) --- p.3Banking Reforms from 1979 to 1992 --- p.3Reforms since 1994 --- p.5Effects of Reforms --- p.7Central Bank Autonomy --- p.7New Instruments of Monetary Management --- p.8Reforms of the Interbank Market --- p.8Regulation and Competition --- p.9Chapter III. --- TRUST AND INVESTMENT COMPANIES IN CHINA --- p.11Emergence of TICs in China --- p.11Development of TICs in China --- p.12The Early Trust Industry --- p.12TICs in the 80s --- p.13The Latest Development of TICs --- p.16Business Activities of TICs --- p.17ITICs --- p.18Funding --- p.18Regulations and Legal Position of TICs --- p.19Minimize Legal Capital --- p.21Location and Ownership --- p.22Supervision --- p.22Prudential Ratios --- p.23Participation in the Interbank Market --- p.23The Role of TICs in the Economic Reform --- p.24Some Important TICs and ITICs --- p.26National Level TICs --- p.27Provincial Level TICs --- p.29Chapter IV. --- THE GITIC INCIDENT --- p.32Chapter V. --- IMPACT AND IMPLICATION OF THE GITIC INCIDENT --- p.36Possible Problems Lead to the Failure --- p.36The Dilemma --- p.40Collapse of Confidence --- p.41Burden on State Banks --- p.41Implications of GITIC Case --- p.42Chapter VI. --- RECOMMENDATIONS AND CONCLUSION --- p.46Limitations --- p.46Recommendations --- p.47Conclusion --- p.49APPENDIX --- p.50Table 1.1 - The Structure of Chinese Financial System (by 1995) --- p.50Table 1.2 - Chronology of Economic Reform --- p.52Table 1.3 - Chronology of Financial Sector Reform --- p.53Table 1.4 - Permitted Business Activities and Managerial Requirements for TICs --- p.54Table 1.5 - Prudential Ratios for TICs in China (1994) --- p.56Table 1.6 - A Summary of GITIC's Business by 1997 --- p.57Figure 1.1 - Composition of Deposits by TICs (1986-1996) --- p.58Figure 1.2 - The Supervision of TICs by PBOC --- p.59BIBLIOGRAPHY --- p.6