Nobody downloaded yet

Review of red capitalism - Book Report/Review Example

Comments (0) Cite this document
Name Professor Course Date Red Capitalism Introduction In the year 1975, Deng Xiaoping who is a future Chinese premier mobilized a delegation to the UN in New York. Chinese officials uncovered their plan as they made arrangements of the expensive trip because they could only gather $ 38,000 in cash…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.1% of users find it useful
Book review of red capitalism
Read TextPreview

Extract of sample
"Review of red capitalism"

Download file to see previous pages Chinas financial success has encountered many problems and it has stabilized along several doubts of their financial system. Currently, these doubts have been great more than ever. The banking system in China is different from the banking systems in the west. Even though the biggest four banks are publicly listed and their accounts audited by international accounts, their major goal is not to maximize the returns of shareholders (Walter & Howie 12). Instead, these banks are considered as an arm of state. Several banks that lend money are directed through favorable rates that are controlled by the state. Fraser and Carl believe that the communist party uses the banks like basic utilities for the purposes of providing unlimited capital to the cherished state. This results in banks that have large nonperforming loans and the calculation of these loans is delayed. The current history of China banks is noted as a piecemeal reform that is connected to Beijing ability to move away from bad loans. During the late 1980’s a large burst of bank lending from the request of local government ended in bad inflation and real estate bust. 12 years later, there was accumulation of nonperforming loans in companies that were owned by the state, which accumulated, in the banking system (Walter & Howie 23). There were bad debts including those from the big four banks that totaled up to 40% of the total lending. Observers from the west folded their hands and speculated that the banking system in China would cause severe problems to the economy. However, their prediction turned out to be wrong. It is only after some time did Beijing intervene and come to their rescue. Zhu Rhongi who is a known for his reform minding strategies brought in western investors and they became partners with the Chinese banks. Wall Street was hired to instill risk management strategies to chine. In addition, China banks were relieved from their bad loans by what is Howie and Walter call accounting legerdemain. During the year 1998, The People Bank of China and the central state bank reduced the requirements of the big four reserves. This made the banks free and they were able to acquire special treasury bonds from the ministry of finance (Walter & Howie 32). This loan proceeds were later used as capital for the banks. Beijing later established asset management companies that bought the nonperforming loans at a face value. The repositories of the toxic credit were used to issues notes to the bank. After the notes were due in the year, 2009 they were pushed to another decade. The financial magicians then used another brilliant trick in the year 2005. The ministry of finance then put other non-performing loans in a co-managed after which they issued IOUs. The banks were supposed to repay this through a combination of bank dividends, selling of shares and loan recoveries. The matters became more complex in 2009 when banks began to get large stakes of assets from management companies that were still having non-performing loans from previous decades. These kind of accounting boost strapping has made China to avoid reckless lending to people in the society. Beijing banks are more profitable because they have spread evenly their cost of borrowing to what they charge upon lending (Walter & Howie 42). Chinese people endure the cost since they receive low rates on their deposits. In technical terms, this is known as financial repression and in China, it is expected to be 4% GDP. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Book review of red capitalism Report/ Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/history/1479663-book-review-of-red-capitalism
(Book Review of Red Capitalism Report/ Example | Topics and Well Written Essays - 1250 Words)
“Book Review of Red Capitalism Report/ Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/history/1479663-book-review-of-red-capitalism.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Red Capitalism by Carl Walter and Fraser Howie
The two authors have great experience and knowledge of how the Chinese financial framework and its economy in general operate. They have worked in the middle kingdom for a considerable time and form the book, this is seen by how they provide accurate facts about China’s financial reforms from as far as Zhu Rongji in the 1908’s to the present situation involving various people who lead large financial institutions owned and controlled by the government.
3 Pages(750 words)Book Report/Review
Capitalism and Freedom - book review
The author argues that economic freedom is a major precondition for political freedom. The book is based on the United States perspective of a pure capitalist society. It is an insightful book that provides insight into economics and its relationship to freedom in addition to other economic aspects.
5 Pages(1250 words)Book Report/Review
Book Report About Capitalism/Entrepreneurship
Atlas, “the giant who holds the world on his shoulders” has been equated with the citizens of a society, who are holding up the society as a functional entity. One character of the novel saying that he would advice Atlas to shrug so that the world does not continue to crush him under his weight, is the catch line of this novel.
4 Pages(1000 words)Book Report/Review
Book review
The book The Making of the Slavs: History and Archaeology of the Lower Danube Region is a well-drafted detail of the origins of Slavs; written by a prolific writer Florin Curta. Curta is an American historian and an archaeologist born in Romania. He is a specialist in the field of Balkan history and is considered an authority in the field.
4 Pages(1000 words)Book Report/Review
Book review
It is often referred to as being the study or the science of the society. It deals with all the mechanisms, workings as well as the problems of the society. In the past, a lot of research has been done in the field of social science. Modern social science has seen names like Max Weber and Karl Marx who are known as the fathers of this field of study.
3 Pages(750 words)Book Report/Review
Red Capitalism Book Review
The book starts with introduction of reforms from 1992 to 2005 and end of reform in 2005 and then briefly introduces several financial entities and instruments in China that are used to reform its financial system and to facilitate economic
4 Pages(1000 words)Essay
Within the Jewish apocalyptcism responses moved in tandem with the prevailing religious and political conditions. The aim of the book, according to the author, is not to join issues with any other studied and researched work published before.
5 Pages(1250 words)Book Report/Review
- (Quote Act II, Scene V) Donald Davidson belongs to the second category. This writer attempted something which a normal writer
5 Pages(1250 words)Book Report/Review
Book review
This mini-paper is a combination of book review and critical analysis of this remarkable yet tragic novel. The book’s tragic title completely relates to its story of an African clan
2 Pages(500 words)Book Report/Review
Managerial Capitalism Book Report/Review
market, integrated by the railroad and the telegraph, a story told in more detail in the Visible Hand (1977), and partly due to its competitive characteristics. The railroads pioneered modern management in the 1850s and later, through bills f lading, intercompany billing, equipment identification and management, cost accounting, pricing, and so forth.
8 Pages(2000 words)Book Report/Review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Book Report/Review on topic Book review of red capitalism for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us