Economics of China's Financial System Choices

Author: Zhang Jie
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Features: This book is the third major work by the author on the issue of China's financial system, following "The Structure and Change of China's Financial System" and "Financial Intermediation and State-owned Banks in Economic Change." On the premise of maintaining a consistent overall logic with existing research, the author attempts to conduct an in-depth analysis of the evolutionary path and transformation mechanisms of China's financial system from the perspective of institutional choice, aiming to enrich and expand the existing research framework and conclusions. The book first focuses on the determinants of a country's monetary system, particularly its banking system, and then analyzes the intrinsic connection between China's high monetization phenomenon and its banking system at the macro level. Subsequently, it examines the financial political economy implications of capital injection into state-owned banks and the rationale for the existence of the state-owned banking system from a micro perspective. Furthermore, it proposes a real-world case to highlight the marketization paradox in the transformation process of China's financial system. Finally, taking a long-term perspective, the book discusses the reform process, performance, and evolution of China's rural financial system, thereby significantly addressing the shortcomings of the author's previous research framework, which overlooked the role of rural finance.