Date of Award

Spring 5-1-2001

Document Type

Thesis

Degree Name

Master of Arts (MA)

Department

Department Not Listed

First Advisor

Aimin Chen

Second Advisor

Richard Lotspeich

Third Advisor

Terrance Parks

Abstract

China's economic reform is now at a critical stage ofrestructuring the financial sector and state-owned enterprises (SOEs). Although refonns have accomplished much over the past two decades, many problems still exist in these two sectors. Chinese banks and enterprises influence and interweave with each other. The banks can't operate fuJly as commercial banks until the principal borrowers are fully reformed. SOEs cannot become profitable unless the banking system is commercialized and stops making poHcy loans to the money-losing enterprises. How can China reform its banking system and SOEs to achieve sustained long-term growth? This study focuses on the reform of the relationship between the banking system and SOEs. Moreover, some recommendation proposals are given.

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