중국의 발전전략, 금융시장 하부구조와 은행중심 금융제도

China`s current financial structure is characterized by a typical form of bank-based financial system(BBFS). The purpose of this paper is to identify major factors which help explain the evolution of China`s BBFS and to examine the possibility of prospective changes in financial structure. Above all. the state`s control over finance seems to be the most important factor that explains China`s BBFS because the control can be implemented more easily in the BBFS than in the market-based financial system. The severe government intervention in China`s financial sector aims to achieve the state`s development strategy(i.e., heavy-industry-oriented development strategy) and political considerations such as supporting state-owned enterprises.<BR> The second factor that explains China`s BBFS is the inefficient operation of capital markets. The underdeveloped stock market in China is due primarily to political constraints and fixed costs associated with the establishment of market infrastructures. The fact that a significant portion of issued shares is not tradable on the bourse represents one of the state`s political constraints in that it is closely related to ownership reforms of state-owned enterprises. In terms of market infrastructures. the immaturity of corporate accounting practice and the lack of information disclosure in the market exacerbate insufficient investor protection. The paucity of market infrastructure is one of the main reasons why China still maintains the BBFS.