Monday, December 23, 2013
Structural "Money Crunch" Is Due to the Defects In Banking System
ANBOUND
It is obvious that China's money shortage is due to structural rather than quantity issue. ANBOUND’s research team believes that financial reform that lags behind leads to the capital market fragmentation. Besides that, BCRC’s policies that do not comply with the law of enterprises development also triggered rent-seeking behaviors among Chinese banking industry. This kind of collective corruption is currently spreading and damaging China’s real economy.