ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Finance in China after WTO

State directives to banks in China on the disbursement of credit and incentives offered by the state to provide facilities for industry have worked as an incentive for foreign investors. A large part of these FDI inflows is related to the success of China in having a ?guided financial market?. The benefits of these inflows, in the process, are reaped by both industry and finance, as opposed to a situation of finance-led growth alone, where speculation dominates the financial flows. In China, regulatory institutions in the area of banking, securities and insurance are given wide-ranging powers thus keeping a close vigil on the functioning of both finance and industry.

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