经济史考试题目及答案(全英文)

Review Questions for Lecture/Topic 7: Township & Village Enterprises (TVEs)

Q7.1a Indicate some private ownership forms inChina.

Q7.1b Indicate some non-private but also non-state ownership forms inChina.

Q7.2a Explain whyChina’s township-village enterprises (TVEs) are unique (in terms of ownership forms and international comparisons).

Q7.2b A TVE is a coalition between entrepreneurs and community (township or village) government. Summarize the community government’s roles in or contributions to the TVE’s development.

Q7.3 Summarize the two stages of TVEs’development.

Q7.4a Summarize the government policies for TVEs during their golden period from 1979 to mid-1990s.

Q7.4b Explain why TVEs at their early days of reform could achieve fast development [Or summarize the initial “favorable”conditions of TVEs at their early days of reform].

Q7.4c Summarize TVEs’development from 1979 to mid-1990s.

Q7.5a Summarize the reasons to privatize TVEs in mid-1990s.

Q7.5b Indicate the various methods of TVE privatization in mid-1990s.

Review Questions for Lecture/Topic 8 (Week 9):China’s Financial System

Q8.1 Outline the evolution ofChina’s financial system.

Q8.2a Explain financial deepening and financial broadening.

Q8.2b Explain whyChina’s financial system is “deep but narrow”with the help of available data.

Q8.3 Explain why the deposit side inChina’s banking system is impressive and successful.

Q8.4a Describe the weakness ofChina’s banking system in the 1990s.

Q8.4b Describe the steps of re-capitalization of Chinese banks to improve their capital adequacy ratios.

Q8.5 Briefly describe the development ofChina’s stock markets.

Q8.6 Indicate some peculiarities inChina’s stock markets.

Q8.7 Give a comparative evaluation ofChina’s stock market capitalization.

Q8.8 Describe the functions ofChina’s stock markets, and explain why these functions have or haven’t been achieved.

QAs Lecture 7: China’s Township & Village Enterprises (TVEs)

Q7.2b A TVE is a coalition between entrepreneurs and community (township or village) government. Summarize the community government’s roles in or contributions to the TVE’s development.

? Political protection

? Initial capital investment

? Help obtain loans from rural credit cooperatives/banks

? Negotiation ?Collateral

provision ?Loan guarantee

? Selection and rewarding managers

? Profit sharing ?Leasing

? Connections

Q7.3 Summarize the two stages of TVEs’development.

? First Stage: from 1978 to mid-1990s

? Slow start of private ownership firms

? Very rapid growth of collective firms, especially rural TVEs

? No privatization of collectives

? Second Stage: from mid-1990s to present

? Rapid growth of private ownership firms

? Fast privatization of collective firms

? Fast emergence of share holding ownership forms

?Publicly traded stock companies

?Closely held stock companies

Q7.5a Summarize the reasons to privatize TVEs in mid-1990s.

? Government ownership has costs

? Some TVEs were collectives in name (e.g., inWenzhou)

? But most TVEs were real collectives

? Changing economic conditions

? Markets became more competitive, profit rates declined rapidly

? Private firms enter, attracting able entrepreneurs away

? When TVEs grew larger, more costly to manage with government involvement ? Changing political conditions

? Private property rights become more secure

QAs for Lecture 8: China’s Financial System

Q8.4a Describe the weakness ofChina’s banking system in the 1990s.

1. Capital adequacy ratio (CAR) for a (financial) firm is the share of own capital in total

assets. TheBaslestandard for CAR is 8%, so that a bank has adequate financial resources to deal with unexpected adverse events.

2. In 1990s, state banks’CARs decreased to about 5%, while the share of bad loans (or non-performing loans –NPLs) soared:

? Around 40% of total outstanding loans were NPLs in late 1990s, very high by international standard (5%) –although some can be recovered

3. So the state banks were technically insolvent.

Q8.8 Describe the functions ofChina’s stock markets, and explain why these functions have or haven’t been achieved.

? Two purposes or functions ofChina’s stock markets:

? Diversify financing channels: Raising funds directly from private investors instead of through banks

? Diversify ownership structure: Dilute government’s shares and to improve corporate governance and control

? Because the state still controls majority shares, the second purpose has not been achieved

? Since the market is still quite “thin”and typically only open to large SOEs, the first purpose has not been well achieved

? Initial development ofChina’s stock markets was clearly part and parcel of the process of state-enterprise reform, rather than being an alternative funding

channel for independent and private firms.

? This would not necessarily have been a bad beginning, if initial listing had led quickly to more thorough privatization.

? Instead, this subordination to the state-owned economy became a congenital defect, and stock market reforms became stalled, presenting a classic example of the way in which a gradualist reform can get “stuck”halfway through the

process of change.