Abstract
This chapter delves into the origins of informal finance in China. It provides a brief summary of the early days of financial and economic reform under Deng Xiao Ping and the power struggles that ensued within the leadership in Beijing, drawing on work by Susan Shirk, among others. It then incorporates the changes in the banking system with the establishment of the state banks and the importance of the concept of “financial repression” to China’s economy and fiscal system. The author describes some of the early forms of financial intermediation such as rural credit cooperatives.
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Collier, A. (2017). Early Shoots of Informal Finance. In: Shadow Banking and the Rise of Capitalism in China. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-10-2996-7_2
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DOI: https://doi.org/10.1007/978-981-10-2996-7_2
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