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Article: Supplement: China - High Hopes For New Team - China's New Prime Minster, Wen Jiabao, Is Aware Of The Weak Financial System He Has Inherited. Louise Do Rosario Reports From Shanghai And Beijing On The Tasks That Lie Ahead Of Him To Strengthen Public Financ.
- Article from:
- The Banker
- Article date:
- May 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When Zhu Rongji became China's prime minister in 1998, there was a sense of crisis in the country's financial system. One bank had shut down, dozens of trust companies had gone bankrupt and there were runs on small lenders in several cities and towns. More worrying was that the Asian financial typhoon was at China's doorstep, threatening to bring a capital flight, currency devaluation and other economic damage to another major economy in the region.
Mr Zhu and his team braved the storm by quickly closing down dozens of ailing financial institutions and imposing tight control over credit. He also set up a 200-member Central Financial Work Force to recentralise ...