Managing Economic Crisis in East Asia

Index

Index 207 Index A Agriculture Bank of China (ABC), 25 Alcoa, 72 Aluminium Corporation of China (Chinalco), 72 anti-dumping investigations initiated, 98 number of final measures, 99 anti-dumping investigations, World Trade Organization, 97 Argentina, anti-dumping final measures, 100 Asia, interdependence in trade, 87 Asian Financial Crisis, decrease in loans, 144 B Bank of China (BOC), 25 Bank of Communication, 25 Bank of East Asia, 122 Bank for International Settlements, 167 bankruptcies, large scale, 39 banks, inadequate regulations, 1, 2 Bernanke, Ben, 67 bond market, China, 16 Brazil anti-dumping final measures, 100 foreign exchange crisis, 184 Brembridge, John (Sir), 110 Britain short-term to total debt ratio, 184 bubble economy effect of, 194 microeconomic behaviour changing to macroeconomic behaviour, 195–96 building and construction industry contraction of, 5 C Canada short-term to total debt ratio, 184 208 Index capital controls, suggested, South Korea, 185 Centre for Economic Policy Research, 102 China anti-dumping measures against U.S., 101 banking sector after-tax net profits (2008), 25 impact of U.S. subprime crisis, 24–26 banks, bad debts, 25 banks holding Lehman Brothers bonds, 25 big four commercial banks, performance, 26 bond market, underdevelopment, 16 cancellation of orders for export to U.S., 6 continuous twin surpluses, 51, 52 corporate bond market, 41 corporate governance, 22 improving, 15 crisis prevention, 42–44 criticisms of U.S. policies, 68–69 currency, 39–40 controlled floating exchange rate, 15 forward exchange rate market, 73 issue of devaluation, 22 promoting internationalization of, 72–74 viability for savings, 17 current account surplus, 53 decline in trade, 81–93 prevention measures, 94 derivative securities, 41 diversification, speeding up of, 70 domestic demand, 203 domestic price of unskilled labour, 53 economic growth, external demand, 80 effect on export sector, 6 encouraging SOEs to make overseas mergers and acquisitions, 71–72 entrance into World Trade Organization (WTO), 16 experience during Great Recession, 8, 9, 10 export related activities, 81 export trade, sharp decline, 83 export-oriented firms, default, 29 exports ASEAN, 87 comparative advantage exaggerated, 53 Index 209 Japan, 87 monthly growth, 90 poultry and meat, 95 Taiwan, 87 exports to Hong Kong, 86 external environment, effect of, 94–103 FDI inflows, 53 FDI-led development strategies, 47 financial system impact of U.S. subprime crisis, 14–44 investor protection, 15 management of risks, 40 overview, 17–20 fiscal stimulus package, 7 foreign currency reserves, 24, 43, 46–77 accumulation, 48–56 GDP ratio, 50 U.S. long-term treasury bonds, 54 foreign currency reserves (1993–2008), 49 foreign direct investment, 31 inward, 51 foreign reserve, large exposure to U.S. government bonds, 40 foreign reserve assets, recapitalization of state-owned banks, 33 fund transfers, 18 funding new industries, 41–42 future development, key issues, 38–43 government policy measures, 94–103 government responses to crisis, 68–75 Gross Domestic Product, 77, 80 Harmonized System (HS), 104 household consumption, 46 impact on stock market, 27 impact of U.S. subprime crisis, 20–32 comparison to Asian Financial Crisis, 21–24 contagion channels, 20– 21 insurance companies, 41 interest rate fluctuations, 29 investor protection, 41–42 issuance of treasury bonds, Hong Kong, 73 Key Industrial Development Strategy, 95 labour intensive products, tax rebates, 94, 95 launch of Keynesian initiatives, 205 210 Index liquidity withdrawal, 27 market and bank features, comparison, 19 monthly exports and imports, 84 non-performing bank loans (NPLs) ration in major commercial banks, 23 reduction, 15, 22 ordinary and process trade, monthly growth, 91 partial currency peg, 43 preference policies to attract FDI, 54 proposal for a supersovereign reserve currency, 74 real economy, indirect impact, 29–32 regulatory dilemma, 33 request that U.S. Government behave more responsibly, 48 resource misallocations, 53, 54 risk management, 40–41 role of reputation, relationships and cronyism, 36 round-tripping FDI, 54 securitization, 37 small and medium-sized enterprises (SMEs), 29 government aid, 94 sources of GDP growth, 82 State Administration of Foreign Exchange (SAFE), 70, 77 purchase of shares in foreign companies, 71 state-owned assets management companies (AMCs), 22 stimulus package, 32 stock market plunge, 198 stock trading, highly speculative, 28 Strategic and Economic Dialogue with United States, 69 structural adjustments needed, 76 trade, Northeast and Southeast Asia, 87 trade expansion, importance, 80 U.S. bailout plan, 32 China Development Bank (CDB), 72 China Investment Corporation (CIC), 70 China Merchant Bank, 25 [18.188.61.223] Project MUSE (2024-04-26 13...