Banking reform lies at the heart of economic reform in China and is
central to sustaining the country's high economic growth. This text
covers an important economic policy issue in China - the existing
and potential roles of the financial sector in the development of
the Chinese economy. It explores the relationship between the
reforms of the financial sector, of state-owned enterprises and of
the social welfare system. The text presents a variety of data
accompanied by insights and interpretations. It also examines the
original estimates of the cost of the social welfare burden, given
that social services such as healthcare and education are provided
by state-owned enterprises rather than by the private or public
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