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The Chinese Banking Sector

Victor Shih

As Minxin Pei has pointed out, senior Chinese leaders remain determined to maintain control over China’s massive banking sector, using it to accomplish a host of policy and political outcomes.

By the benchmark of government ownership, the Chinese banking sector remains one of the most unreformed in the world.
Ultimately, the well-being of the financial sector remains intimately linked to the continual effectiveness of the Communist Party state. Thus, the key indicators for the future of China are political: tracking the strains facing the CCP regime.