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Monday, March 01, 2004

Chinese Reform Picks Up Speed Via Businessweek

Beijing is making smart moves, but bad loans are still a big problem The big question: Why have the Chinese suddenly decided to put the pedal to the metal? The answer is part comforting, part scary. The comforting part: Authorities seem genuinely determined to create a real financial system, one that raises capital efficiently and directs it to the best companies. The scary part: The renewed focus on finance is an indication that Beijing believes the country's problems with dud loans and ballooning credit are getting out of control -- and is frantically trying to fix things before it's too late.
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