GPPS 455 - Financing the Chinese Miracle - Shih [SP23]

GPPS 455: Financing the China Economic Miracle (Full Syllabus Here)

Spring, 2023

Instructor: Victor Shih

Email: vcshih@ucsd.edu

Mondays, Wednesdays:  3:30-4:50pm

Location: 3202

Office Hours: Tuesdays 3:30-5:30pm (sign up here)

Twitter: @vshih2

Summary: This course will first examine the theoretical foundation of China’s financial system, as well as the pitfalls and benefits of this system.  It then will examine the role of different financial institutions and instruments in this system.  Finally, after decades of state controlled financing, this course inquires whether systemic risks are building up in the Chinese financial system.

By the end of the course, students will have command of the following topics:

• Basic theories of financial repression and how countries used it to accelerate the pace of growth in the past 100 years, as well as the pitfalls of financial repression
• Advanced knowledge of the structure of China’s financial system, including how industrial ministries work with the central bank and commercial banks to achieve specific macro and industry specific objectives
• The role of the Chinese Communist Party in controlling financial institutions in China, as well as how the party-based command structure can mobilize financial resources in China
• The pitfalls of regulation in banking, securities, and asset management and how they gave rise to financial frauds and non-performing credit.
• The rise and regulation of shadow banking in China
• The role that central and local government debt played in China’s financial system and on-going challenges in the financial system

Grade:

15% discussion questions on Canvas

20% class participation

20% midterm (May 1^st in-class, closed book written midterm)

5% group project proposal (due on May 10^th via Canvas)

10% group project presentation (June 5^th and June 7^th in class)

30% group project paper (due June 9^th at 11:59pm PST via Canvas)

Required Books:

Carl Walter. 2022. The red dream : the Chinese Communist Party and the financial deterioration of China (available electronically).  

Andrew Collier. 2017. Shadow banking and the rise of capitalism in China. Singapore: Palgrave McMillan (available electronically on the UCSD Library website)

April 24^th, May 29^th, May 31^st classes are on Zoom; there is no class on May 3^rd ; otherwise classes and exam are in person.  Readings in article format are available in the “Reading” folder on Canvas.  Discussion questions are submitted weekly, ideally before the Wednesday class each week in the “Discussion” section of Canvas.  Students can omit submitting discussion questions for one week during the course without penalty. 

Please note that plagiarism is taken very seriously in this class.  All cases of plagiarism will be prosecuted fully according to university policy.  Please see here for the definition of plagiarism: http://senate.ucsd.edu/Operating-Procedures/Senate-Manual/Appendices/2