The truth behind the rise of China and whether or not it will be able to maintain it How did China transform itself so quickly? In Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise, Revised Edition Carl Walter and Fraser Howie go deep inside the Chinese financial machine to illuminate the social and political consequences of the unique business model that propelled China to economic powerhouse status, and question whether this rapid ascension really lives up to its reputation. All eyes are on China, but will it really surpass the U.S. as the world's premier global economy? Walter and Howie aren't so certain, and in this revised and updated edition of Red Capitalism they examine whether or not the 21st century really will belong to China. The specter of a powerful China is haunting the U.S. and other countries suffering from economic decline and this book explores China's next move Packed with new statistics and stories based on recent developments, this new edition updates the outlook on China's future with the most cutting-edge information available Find out how China financed its current position of strength and whether it will be able to maintain its astonishing momentum Indispensable reading for anyone looking to understand the limits that China's past development decisions have imposed on its brilliant future, Red Capitalism is an essential resource for anyone considering China's business strategies in today's extremely challenging global economy.

The truth behind the rise of China and whether or not it will be able to maintain itHow did China transform itself so quickly? In Red Capitalism: The Fragile Financial Foundation of China's Extraordinary Rise, Revised Edition Carl Walter and Fraser Howie go deep inside the Chinese financial machine to illuminate the social and political consequences of the unique business model that propelled China to economic powerhouse status, and question whether this rapid ascension really lives up to its reputation.All eyes are on China, but will it really surpass the U.S. as the world's premier global economy? Walter and Howie aren't so certain, and in this revised and updated edition of Red Capitalism they examine whether or not the 21st century really will belong to China.* The specter of a powerful China is haunting the U.S. and other countries suffering from economic decline and this book explores China's next move* Packed with new statistics and stories based on recent developments, this new edition updates the outlook on China's future with the most cutting-edge information available* Find out how China financed its current position of strength and whether it will be able to maintain its astonishing momentumIndispensable reading for anyone looking to understand the limits that China's past development decisions have imposed on its brilliant future, Red Capitalism is an essential resource for anyone considering China's business strategies in today's extremely challenging global economy.

Preface to the Second Edition xiPreface to the First Edition xviiList of Abbreviations xxi1 Looking Back at the Policy of Reform and Opening 1Thirty years of opening up: 1978-2008 2Thirteen years of reform: 1992-2005 10The end of reform: 2005 15China is a family business 222 China's Fortress Banking System 27Banks are China's financial system 29China's banks are big banks 31Crisis: The stimulus to bank reform, 1988 and 1998 33China's fortress banking system in 2010 41The sudden thirst for capital and cash dividends, 2010 473 The Fragile Fortress 53The People's Bank of China restructuring model 56The Ministry of Finance restructuring model 66The "perpetual put" option to the PBOC 73The new Great Leap Forward Economy 76China's latest banking model 82Valuing the asset management companies 85Implications 884 China's Captive Bond Market 95Why does China have a bond market? 98Risk management 102The base of the pyramid: Protecting household depositors 1165 The Struggle over China's Bond Markets 125The CDB, the MOF, and the Big 4 Banks 126Local governments unleashed 134Credit enhancements 141China Investment Corporation: Linchpin of China's financial system 145Cycles in the financial markets 1586 Western Finance, SOE Reform, and China's Stock Markets 163China's stock markets today 164Why does China have stock markets? 168What stock markets gave China 1727 The National Team and China's Government 185Zhu Rongji's gift: Organizational streamlining, 1998 186How the National Team, its families, and friends benefit 196A casino or a success, or both? 209Implications 2128 The Forbidden City 215The Emperor of Finance 217Behind the vermillion walls 220An Empire apart 227Have the walls been breached? 231Cracks in the walls 235Imperial ornaments 239Appendix 245Select Bibliography 249Index 251