Posted 18 Apr 2007 06:30
ChinaÂs financial sector has undergone significant changes since the country opened its doors to the world in the late 1970s. For example, the banking sector has developed from a simple banking system in which direct credit allocation was controlled by the central government through specialized banks into a complex system in which different functions (e.g. regulatory, commercial banking etc.) are implemented by various types of institutions.
The private sector and foreign financial institutions are becoming increasingly important. Even though its securities markets are still quite closed to outsiders, ChinaÂs domestic banks and insurance companies remain dominant in their respective markets. Yet, the world is witnessing unprecedented and dramatic changes in all of these sectors in China.