Summary
GITIC was forced to closure in 1998/99, creating concern among foreign investors, particularly Japanese and Korean. The concern was that the Chinese government would not stand behind its own store investment bank. The case is about how to read economic policy-making in a non-transparent environment.
Teaching objectives
How should GITIC�s failure be seen:
Reaction to Asian financial crash
Beijing wants to preserve financial independence
Beijing assets central government control over provinces
Beijing wants financial reform
Beijing as a credible partner
Keywords
- RD0299
