China's Non-bank Financial Institutions: Trust and Investment Companies, Parts 63-358

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Anjali Kumar
World Bank Publications, Jan 1, 1997 - Business & Economics - 92 pages
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Spanish excerpts from World Bank Technical Paper No. 280 (English), Stock no. 13206.

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Page x - EEA European Economic Area EEC European Economic Community EFTA European Free Trade Association...
Page 11 - Industrial and Commercial Bank of China (ICBC) Agricultural Bank of China (ABC) Bank of China (BOC...
Page 7 - The government has established three policy banks, namely, the State Development Bank of China, the Agricultural Development Bank of China and the Export-Import Bank of China. These...
Page 59 - Policy banks State Development Bank of China Agricultural Development Bank of China Export-Import Bank of China State commercial banks...
Page 59 - China Everbright Bank Hua Xia Bank China Investment Bank Guangdong Development Bank Shenzhen Development Bank Pudong Development Bank Shenzhen Merchants Bank Fujian Industrial Bank Yantai...
Page 29 - The Provisional Regulations of April 1986 prohibit TICs from operating beyond their business scope unless authorized to do so by the PBC or State Council. This was not strictly enforced. The regulations also emphasize independence from the government (Article 23), (despite continued strong links to government at all levels) but permits trust activities to continue as departments of specialized banks ('in accordance with the division of business for specialized banks') (Article 30).
Page 21 - TICs have increasingly ventured into new high risk areas in the securities business. Initially, TICs restricted themselves to operating as brokers for clients, but are now taking greater risks, dealing on their own account and adopting market positions. Further, many TICs have ventured into underwriting, which, with increasing competition due to the use of 'firm commitment' methods, and a decline in IPO underpricing, also implies increased risks for the underwriter.
Page 28 - Minimum capital requirements for foreign exchange transactions have also been redefined; in the Regulations on NBFIs in Foreign Exchange Transactions (1992) and the Administration of Foreign Exchange Business Provisions (1993), in order to deal in foreign exchange, a national TIC must have at least US$15 million of paid up capital in spot exchange or the equivalent of this amount of spot exchange funds in other currencies. Provincial TICs must have US$7.5 million or equivalent.
Page 19 - Their range of services has grown to include commercial banking, trust services, guarantees, direct investment, funds management, consulting, and project management. Besides economic development projects, some TICs have become a significant force in the securities markets, engaging in underwriting and securities dealing in addition to broking and trading. TICs have been active in real estate development and in the foreign exchange markets. (1) As a result, TICs in China do not resemble financial...
Page 21 - TICs, as opposed to banks, and have collected 'funds', labeled enterprise funds or labor funds, for this purpose. large amount of real estate lending undertaken by the TICs, especially around the boom of 1993. A third reason is the high degrees of risk concentration, not only in real estate or construction but also in other sectors, such as agriculture, which are subject to seasonal fluctuations and natural disasters. TICs do not compute risk concentration ratios.

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OECD Economic Surveys: China 2005
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About the author (1997)

Anjali Kumar is a financial access issues adviser in the Financial Sector Operations and Policy department at the World Bank. Prior to joining the Bank, she served as a consultant to the Ministry of Industry in the government of India, and she held a fellowship at the Institute of Economic Growth, Delhi.

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