China must let go of its capital strings

China's underlying development challenges cannot be met without deepening and restructuring capital markets, most importantly opening them up to foreign competition.

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Lincoln Fung,

Henry Paulson's three reforms sound very good.
I think the first one is the most likely to be undertaken first and more urgently, because it is also the foundation for the other two reforms.
China may want to use interest liberalisation to also create the condition to allow its shadow banking sector to formally become another of its domestic financial institution to compete with its current most state-owned banks.

stanley not ava...,

One doubts that the chinese needs any advice on how to run their economy. The so called democracys seem to go from bull markets to bust quite easily.It is better for china not to follow the advice,no matter how well meaning of commentators or financial advisers,who haven't come up with a better model than the one we have in place now.

Brett Nelson,

I could not agree more Stanley. The corruption and economic mismanagement we have seen in the western worlds of Europe and North America are shining lights as to "How not to run our economies". QE is about the best we have been able to offer a system, whose ability to thrive and live relies totally on growth.

I'm not suggesting for a minute China is on the correct path, as its success is relying on this endless cycle as well. BUT!!

The western world, all be-it well meaning, has really nothing to offer China in terms of economic credibility or moral standing.