La Chine (document en anglais)

China the second largest economy in the world, since 2010 ahead of Japan, has displayed impressive annual growth rates for many years. The banking system in China is of a particular sort. For many years (1949-1983), there wasn’t a real banking sector in China. Since 1983 many reforms have been done, in order to decrease the weaknesses and debts of Chinese banking. In this paper, I will first talk about the reforms of Chinese banking and then about the participation of the foreign investor.

The reforms were launched in 1978. The Ministry of Finance controlled the expenditures and revenue of the State. Until 1983, the popular Bank of China acted as counter of the Treasury. Now I will give a deeper insight into the different reforms and actions driven by China while focusing on the shareholding reform.

• On 11 December 2011, China integrated WTO. Ten years after the integration, the situation of Chinese banking was improved.

• An important first step was the separation of the central bank (Bank of China) and the activity of credit assigned to four independent state banks (Bank of Agriculture Bank of China, Construction Bank, Bank of Commerce and Industry) in 1984.

• In 1999, four companies of management of debt (AMC) have been created to deal with irretrievable debt.

• Reforms between 1998 and 2000, were essentially about transforming the four state-owned commercial banks into viable commercial entities. The establishment of four asset management companies helped to eliminate $170 billion of troubled assets from bank balance sheets.

• In 2003, the authorities have implemented several measures to reform the banking system. On 17 September 2003, “the Bureau of Commercial Banks Reform” (BRBC) was established at the meeting of the Council of State Affairs.

This BRBC has proposed a series of reforms to improve the situation of commercial banks :

- recapitalization

- shareholding reform

- introduction of foreign institutional investors

In October 2003, the BRBC proposed a new reform about the shareholding of the Bank of China and Construction Bank of China

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