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A taste of real life during WWIIReview Date: 1998-07-23
A n excellent novel set at turn of the century LondonReview Date: 1999-07-20

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China Review International, Vol.10, No.2 Fall 2003: 399-403Review Date: 2004-11-05
......"highly recommend this book. It contains detailed information on the development of China's financial markets, especially on how the functions of the central bank have changed during the different stages of economic development. Most scholars agree that a country's financial system is crucial to economic growth, and the central bank should play a key role in the process of creating such a healthy financial system. China's experience certainly deserves greater attention. Again, this is a topic on which one cannot find many good studies, and this book offers a good starting point."
The successful economic reforms implemented in China since 1978 has gained tremendous international attention. The latest statistics and estimates show that by the end of 2002 China's nominal GDP per capita has reached one thousand dollars-and this number may actually have surpassed four thousand if calculated by the Purchasing Power Parity (PPP) method. However, neither did this economic achievement happen overnight nor has the benefit been distributed equally across the country. Inequality and unbalance are pervasive across regions, occupations, industries, and economic sectors.
Before 1978, China was one of a few centrally planned economies. Agricultural production was organized collectively as communes. Industrial production was mainly carried out by state-owned enterprises, which formed the backbone of the national economy. Urban collectives played only supplemental roles, while private, individual, and foreign enterprises were almost nonexistent. State-owned enterprises followed central government production plans instead of market demand. Their capital investments, wage allowances, and even personnel placements were allocated directly from the central planner. They simply carried out the designated production plan and turned over all of the output and profits. All expenses were covered by central plans as well, including possible economic losses. Raised in this kind of environment, state-owned enterprises were not used to market competition. Workers in such enterprises were said to have "iron rice bowls," which meant that they had the security of lifetime jobs and benefits.
Besides the industrial sector, several service sectors were also dominated by state-owned enterprises-for example, the banking and telecommunications sectors. The 1978 reforms started with the agricultural sector by dismantling the commune system and instituting a return to family farming (i.e. the household responsibility system). Most scholars agree that urban industrial reform picked up in the mid-1980s, when a large number of non-state enterprises became dominant market forces. Some scholars believe that currently the non-state component accounts for more than 50 percent of China's national economy.
However, the financial sector is one of the last fortresses of the state-run economy. The four largest state-owned banks still control more than 75 percent of total deposits and loans. Despite a tremendous effort from the central government to make them "commercial" banks, they are far from operating like regular commercial banks. Banking reform has become a bottleneck that impedes further economic growth. Moreover, in compliance with the World Trade Organization (WTO) agreement, China's financial market will soon be opened to both domestic and foreign competition. Time is running out for the state-owned banks to adapt and brace for the coming challenges.
This volume is one of only a few studies that are devoted solely to this particular topic. There are any number of books on China's economic development, but most of them do not provide such a thorough, complete, and up-to-date view of this issue. The topic is a narrow but important one, and the author has done a good job covering it-and has provided a useful text for introductory courses on China's financial system as well.
A general-to-specific-approach has been adopted in the arrangement of the contents. After a brief introduction, the next four chapters discuss the evolution of the system by period, in chronological order: (1) the period before 1978, when socialist central banking predominated; (2) 1978-1992, the period of structural change in the banking system, that is, when commercial banking was separated from central banking; (3)1993-1997, the years when the central bank began to function actively, for example in stimulating growth and controlling inflation; and (4) 1998-2001, the period of the Asian Financial crisis and new challenges. Chapter 5 focuses on the impact of accession to the WTO, chapter 6 provides some empirical analysis, and chapter 7 concludes the volume. It is fairly easy for general readers to find those parts that might interest them and skip others that might be too technical. In general, this book is still suitable for readers with minimal background in economics.
Chapter 1 briefly summarizes the key features of the central banking system before reform. Simply put, the People's Bank of China (PBC) functioned as both central bank and commercial bank. PBC, the people's Construction Bank of China (PCBC), and the Bank of China (BOC) together formed the so-called "monobank"system. In particular, the PCBC was in charge of allocating capital investment grants to state-owned enterprises, while the BOC specialized in foreign transactions. State planning was carried out through a credit plan (for business enterprises) and a cash plan (for household consumption).
Chapter 2 details the stage-one reforms of the banking system. Two major reforms conducted in this period were the separation of central banking from commercial banking and the creation of state-owned commercial banks. In 1984, PBC was made the central bank of China. Its commercial ventures were transferred to the newly established Industrial and Commercial Bank of China (ICBC). Earlier, in 1978, the Agriculture Bank of China (ABC) had been established to promote rural development. As a result, China's banking system shows a hierarchical structure, with PBC as the central bank, and ICBC, PCBC, ABC, and BOC as the four major state-owned commercial banks. Meanwhile, China also saw the beginning of non-state financial institutions such as shareholding banks, financial corporations, and even foreign banks. Unlike in the pre-reform era, both state and non-state commercial banks gradually began to form a new, decentralized financial market.
While the new commercial banking system is getting into shape, there have been drastic changes in the function of PBC as the central bank of China. Chapter 3 focuses on how PBC had used both monetary aggregates and interest rate controls to promote economic development and combat inflation. There were several episodes of credit expansion and contraction between 1993 and 1997, and these were the direct result of PBC's activist monetary policies. Even though these measures still resembled the policies of a centrally planned economy, they were necessary at a time when a well-functioning financial market did not exist. On the other hand, these policies turned out to be very effective in maintaining a healthy economic environment, which is important to the long-run benefit of the economy. Another important achievement during this period was the convergence of the dual exchange-rate system; by 1994, the official exchange rate finally merged with the market exchange rate, a move that greatly facilitated international transactions.
China's domestic economy was relatively unharmed by the Asian financial crisis of 1997. A strong Chinese currency also contributed to regional economic stability. One major reason why China was not too adversely affected by the crisis was that it maintained tight control of foreign exchange. Chapter 4 explains in detail how and why PRC government policies, in particular the monetary policies of the PBC, insulated the domestic economy from the turmoil outside China. An understanding of this type of experience should be of value to central banks in both developing and developed countries.
On December 11, 2001, China became a member of the World Trade Organization. This pushed the marketization and liberalization of the domestic economy to new heights. Almost every sector had to make considerable adjustments before they could meet international standards and face new competition, and the financial sector was no exception. Chapter 5 explains the impact of WTO entry on the financial sector. First of all, domestic banks face competition from foreign banks. Second, because the domestic money/capital market is now merging with the international market, the effectiveness of the PBC's monetary policies has come into question. This has made the design of monetary policy a much more complicated task, requiring possible cooperation between central banks. Third, with foreign financial institutions becoming established inside China, PBC is faced with the setting up of uniform rules for both domestic and foreign institutions. This also poses a daunting task for the central bank in the supervising of both types of institutions. In particular, the biggest hurdle PBC now faces is the problem of so-called Non-performing-Loans (NPL). This is a most intricate problem because it involves not only the central bank and state-owned commercial banks but also thousands of state-owned enterprises. Neither banking reform nor industrial reform can be accomplished unless the NPLs problem is solved.
Review by Professor MarkTFung, Johns Hopkins UniversityReview Date: 2004-07-18
by Professor MarkTFung, Johns Hopkins University
Based on his economics graduate work at the University of Chicago and his dissertation at New York University, Guo s book is a rare brevity and bounty that provides the vital linkage between the sequencing of monetary policy to various stages of banking reform in China. Overall, Guo s work is a breed apart in the sea of literature on monetary policy and banking reform in China.
Of the most pivotal
decisions for China s top leaders, how to deal effectively with domestic banking reform while facing an onslaught of foreign
banking interests in China by 2006(the year in which key features of the WTO accession protocol are effectuated) remains at
the top of the policy agenda. At the first session of the tenth National People s Congress in March 2003, the establishment
of a new regulatory body, the China Banking Regulatory Commission, separated the supervision and oversight powers of the People
s Bank of China(PBOC), China s central bank, from its primary responsibility of utilizing monetary tools to achieve economic
policy targets. This new watchdog agency will be charged with overseeing 110 commercial banks, which was once the domain of
the PBOC. And with this responsibility comes an even greater pressure to alleviate the hundreds of billions of dollars in
nonperforming loans at the four largest state banks. This bifurcation of bureaucratic interests should place the important
task of banking reform in China on firmer ground.
In his book, Yong Guo is a Champion of and optimist about
China s banking reforms. His work covers the period from 1949 to 2000 and captures economic data from 1978 to 2000. Guo s
main argument is that, since Deng Xiaoping s reforms, China s implementation of monetary policy had been, in the main, on
the correct course, given China s developmental track. He relies on Ronald I. McKinnon s 1993 celebrated theory of ?optimum
order?-which was expounded upon in The Order of Economics Liberalization: Financial Control in the Transition to a Market
Economy (Baltimore: Johns Hopkins University Press)- to make his case. McKinnon s theory is consistent in regard to China
s economic development in that the optimum order of economic liberalization is one in which the lifting of capital controls
should be the very last order of things , only after a country?s financial house is completely squared away. This may help
explain why China s economy was virtually unscathed from the 1997-98 Asian financial crisis.
It was only a decade ago that
inflation ravaged China at a rate of 13.19 percent in 1993, followed by 21.69 percent in 1994. It was the necessary tripwire
for the PBOC finally to get serious about the formulation and implementation of monetary policy and then undertake its stated
role as the central banker. And unbeknownst to Deng at the time, Guo argues, by his Southern Tour in 1992 actually perpetuated
the country s inflation, Guo argues, by encouraging individuals and municipalities to invest and develop at a frenetic pace.
As a consequence, the demand for money skyrocketed, and this led to spiraling inflation. The inherent problem was an utter
lack of banking supervision, which allowed inter-bank lending practices to unravel in an unregulated fashion. As Guo notes,
it was not until 1995 that China even promulgated a coherent set of national guidelines for inter-bank lending. With a penchant
for profits and a blind eye toward the true defalt risk in loans, financial institutions in China simply hiked interest rates
on loans and deposits in order to remain attractive and competitive with other banks.
A similar situation existed in the
U.S. in the 1920s, Guo notes, which prompted the creation of Regulation Q, which provided an interest-rate ceiling under the
1933 Glass-Steagall Act (annual efforts to repeal Regulation Q have passed in the House but have stalled in the U.S. Senate).
In the end, the PBOC s effective use of microeconomic tools, such as interest-rate targets, allowed for the soft landing
in the China s economy, according to Guo. China s central bank had come a long way since the pre-reform days of 1949-78, when
it functioned essentially as a glamorized cashier for the state, receiving deposits and assets from the state while at the
same time paying out state-authorized liabilities.
We also learn about how the U.S. Federal Reserve system made its imprint
on banking reform in China and the urgency surrounding the creation of a truly independent central banking system. But, the
nature of Chinese politics still dictated a need for banks to serve purely policy interests outside of any financial calculus.
China ?s banking reforms allowed the PBOC to become ostensibly independent of political interference.
The PBOC was finally
emancipated from the burdens of making nonmonetary policy. China s central bank returned to its core competency of crafting
monetary policy. The success of interest-rate targeting from 1993 to 1997 by the PBOC was more sheer accident than brilliance
because , as Guo argues, the monetary tools at China s disposal were extremely limited, given its nascent government bond
market. Hence, it seemed as though the default policy tool for China was to utilize interest rate targets.

TRUE AND ACCURATE ACCOUNT OF THE BATTLEReview Date: 1999-07-10
Australia's Rourke's Drift in Vietnam, a facinating read.Review Date: 1999-05-25

Used price: $17.49

Becoming Your Own China Stock GuruReview Date: 2008-07-31
The Book entitled "Becoming Your Own China Stock Guru" is amazing. It is a "must read book". It ought to be required reading.
Well written, easy to understand, and it is full of useful information for both lay and professional investors who want to learn more about important but little known facts regarding today's China.
The handsome volume delivers what the sub-title promises to provide for those who are looking for the ultimate investor's guide to profiting from China's Economic boom.
But the book offers much more than just technical investment advice that helps the investor to build a stock portfolio. Make no mistake, it does so with great attention to detail, but in addition, the reader gets hard to find, valuable background information. The strategic information presented was carefully researched in China, by the author and his permanent staff at multiple locations.
I was impressed by the logical and systematic way the author explains, step by step, the reasons why the Chinese economy will continue to thrive, and among others predicting the end of the U.S. economic supremacy in a few decades to come.
As the U.S. economy sputters, the book presents a solid case for investing in the Chinese economy, but wisely.
The book provides helpful advice to investors who want to profit from these investments and to do safely, and successfully.
The author provides a roadmap to successful investing in China, and explains investment strategies that should be avoided.
The author's successful track record in investing in China is well documented.
Jim Trippon's top rated "The China Stock Newsletter" has been among the most successful and best investment newsletters during 2007. Who says so?
"The Hulbert Financial Digest", which is a completely independent, impartial and authoritative rating service that arms you with the facts about stock and mutual fund investment letter performance.
Beyond the investment advice presented, Jim Trippon' book makes interesting reading about China, its rich history, economics and culture. It helps the reader to comprehend the enormous opportunities that are ahead in one of the world's largest fast growing economies.
This book is a winner, and I can highly recommend it.
Peter Spyers-Duran, Professor (ret.)
Wayne State University
The Must Have Guide to ChinaReview Date: 2008-04-14
Before "China Stock Guru" I had read every book on the Amazon bookshelf about the Chinese economy and investing in China without feeling I got the whole picture. But this is the only one that has it all. There's no bigger money-making story in the world than the sudden emergence of the world's second biggest economy but no book before this one has brought the whole picture together. It is a huge event...akin to the emergence of the U.S. industrial economy more than a century ago. Who wouldn't have wanted to invest on the ground floor of that?
Of course China is so much different from America and investment there requires special knowledge and background...the kind of understanding that Trippon seems to have in spades. Trippon has done a good job of taking a picture of this huge economic/social development and boiling it down into clear, understandable size, providing a practical and usable perspective for dedicated investors who have an appetite to seek new opportunities while the U.S. is having a tough time economically.

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A must read!Review Date: 2006-07-22
For Isabel, With LoveReview Date: 2005-10-20

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An American Anthropologist with keen attention to the Beijing GamesReview Date: 2008-07-04
Very good readingReview Date: 2008-03-20
Why were the Chinese people all excited when it was announced that the 2008 Summer Olympics would be held in Beijing? Why was it so important to them? Sure, it is a major boost to their economy. What with all the people from all over the world coming to China to cheer on their children or country's athletes. It is more than money and people that will come to Beijing this year. It will be a first in all the years of the modern-day Olympics. China has never hosted an Olympic Games. China is not known to have many Olympic champions; in the last few Olympic Games, China has accomplished their first medals of any color, including Gold.
Susan Brownell has written a brief history book about China and its customs as well as an explanation about what impact, more than financial, these Olympics will bring to Beijing and China itself. The author uses her personal experience as a previous exchange student to China to bring her book to life. She has even competed in athletic events with Chinese women and can bring their stories about not having the advantages that men have. In recent years, more has come out about possible doping in order to make better athletes achieve even higher; she addresses some of the issues of performance enhancing drugs.
For anyone who will be watching any of the 2008 Olympic Games from Beijing this book is very good reading. Through the pages of "Beijing's Games," you will learn more about this Olympics history, host country, host city and invitation to be the "people's Olympics."

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Nothing short-sighted about this bookReview Date: 2005-12-06
Tyler taught during the 1986-87 school year and speaks of the experiences of teaching and of everyday life in China. Some will criticise him for not being more culturally tolerant but he speaks from his experience and that is enough. If you want to know what a typical American will experience in China read this book.
Look Before You LeapReview Date: 2005-09-16
While one year is hardly long enough to become experts on Chinese civilization, the Tylers still manage to learn quite a bit about the local culture during their stay. They made valiant efforts at learning the language, and managed to achieve some degree of fluency during their stay. Tyler's writing style is light rather than academic, and he is a skilled humorist, able to make some of the more dire circumstances seem hilarious in retrospect. Because of the extensive information about the working conditions and expectations from students and employers, I would recommend this book to anyone considering a teaching post in China.

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The Book of Jade is a polished diamondReview Date: 2005-06-10
Carol Davis Koss
wonderfully strange and exoticReview Date: 2003-02-05
What a rush. I was alternately astounded, shocked, confused, frightened, awed, amused, and delighted, by the very intelligent poetry in this book.
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Suzy makes bargain shopping a travel adventure.Review Date: 1998-12-14
A 'must have' for visiting and shopping in Hong KongReview Date: 1998-12-04

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SOTHEBY'S OF LONDONReview Date: 2000-11-06
INDISPENSABLE GUIDE TO BRITISH ART DECOReview Date: 2000-09-23
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