Financial Market Internationalisation and Institutional Change in China

Abstract

What is the role of internationalisation in the process of financial market development and reform in China, a country that has secluded its economy from the outside world for most of the last century and has only reluctantly started to reform and open its financial markets during the economic reform process? How is China building the new institutional foundations for its reforming and opening of financial markets despite its persistent and overwhelming state control over financial assets and domestic financial firms? How do new actors in the financial markets impact their development, how do new market trends change the behaviour of domestic actors? In order to answer these questions, this book applies institutional theories on (financial) market development and regulation to the case of China’s financial market opening. The foundations of these are briefly reviewed in this chapter before locating China within the set of other emerging market and transition economies whose experiences in financial market opening might provide useful insights for the case of China.KeywordsFinancial MarketInstitutional ChangeMarket EntryMarket DevelopmentDomestic ActorThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.