Finance and Financial Management Commons^™

China Financial Research: A Review And Synthesis, Kam C. Chan, Hung-Gay Fung Dr., Samanta Thapa

GFCB Working Paper Series

We review the financial research on China as a transitional economy over the past fifteen years or so. This review sheds light on several important issues that are pertinent for an emerging financial market - how regulation can affect the prices of different financial assets; how and why markets are segmented; corporate governance effects between major and minor shareholders in an emerging market; the importance of a bank-based financial system; interactions between the financial market and the goods market; how market participants can complete the market; and how an emerging financial market emulates established markets and evolves over time. Many …