Capitalizing China

Fan, Joseph P. H.; Morck, Randall; Yeung, Bernard Yin

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Capitalizing China

NBER Working Paper No. w17687

29 Pages Posted: 25 Dec 2011 Last revised: 1 May 2025

See all articles by Joseph P. H. Fan

Joseph P. H. Fan

The Chinese University of Hong Kong (CUHK) - School of Accountancy

University of Alberta - Department of Finance and Statistical Analysis; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Asian Bureau of Finance and Economic Research

Bernard Yin Yeung

National University of Singapore (NUS) - NUS Business School; SUSTECH Business School; ABFER

There are 2 versions of this paper

Date Written: December 2011

Abstract

Despite a vast accumulation of private capital, China is not embracing capitalism. Deceptively familiar capitalist features disguise the profoundly unfamiliar foundations of "market socialism with Chinese characteristics." The Chinese Communist Party (CCP), by controlling the career advancement of all senior personnel in all regulatory agencies, all state-owned enterprises (SOEs), and virtually all major financial institutions state-owned enterprises (SOEs), and senior Party positions in all but the smallest non-SOE enterprises, retains sole possession of Lenin's Commanding Heights. This manuscript introduces the chapters comprising the NBER volume Capitalizing China (Fan and Morck, eds. 2012), which examine China's high savings rate, banking system, financial markets, financial regulations, corporate governance, and public finances; and consider policy alternatives the CCP might consider if its goal is China's elevation into the ranks of high income countries.

Suggested Citation: Suggested Citation

Fan, Po Hung Joseph P. H. and Morck, Randall K. and Yeung, Bernard Yin, Capitalizing China (December 2011). NBER Working Paper No. w17687, Available at SSRN: https://ssrn.com/abstract=1976483