3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Removing the veil for the shadow banking system in China(2016-01-29) Chen, Nuoya;The paper aims to analyze the development of the shadow banking system in China and its role in the rapid economic growth in China for the past three decades. The shadow banking system supports small and medium sized firms and agricultural development projects. This has an important impact on poverty reduction in China as farmers largely refer to informal financial channels to get credit support for seeds, chemicals and animals. The shadow banking system offers credit supplies to lenders who cannot easily obtain credit from the official banking system. The credit supplies they offered use different financial instruments, come with higher interest rates, and were often disguised as financial products landing within the regulatory framework of the administration. The commercial banks also used the shadow banking financial instruments to meet capital thresholds from the People’s Bank of China. As a result, the shadow banking products create longer credit chains, distort credit flows in the financial system by diverting investments into short-term, high return, more risky financial markets. The turbulences in the interbank transaction market, the financial derivative market, the stock exchange markets (including the main-board, the “second tier” market for SMEs and the “third tier” market for start-ups), and the real estate market are all heavily involved in transactions conducted by the shadow banking entities. The shadow banking system in China has been expanding at a pace beyond the current regulatory structure. The internet P2P investment platforms, for instance, become popular with investors and raise funds up to RMB 1 billion each platform. There exist over thousands of internet investment portals, the most popular one being “Yu E Bao”, offered by Alibaba.com. The traditional regulatory institutions, however, do not cover shadow banking investment activities made online. Neither are insurance offered to insurance made online; as the new deposit insurance scheme only cover deposits made in the official banking system. With the ambition of boosting the internationalization of the RMB, financial deepening and economic reforms in China, the financial regulators in China face the dilemma resulting from the regulatory arbitrage associated with the expanding shadow bankinBBC system. Individual investors in China purchase the shadow banking investment products and assume their purchases come with implicit government guarantees, such as wealth management products sold by commercial banks for trust companies and local government investment platforms. On the other hand, it is critical for investors to make rational investments; thus, regulators are obliged to remind investors of risks related to the shadow banking products, that the fantasy of governments repaying failing shadow banking investments will be not realized. It is also the responsibility of the regulators to divert funds collected by the shadow banking entities to long-term investments to build up industrial bases. The financial deepening in China required the transformation of the shadow banking entities and financial products offered into ones with adequate capital cushions and sufficient liquidity. The internationalization of the RMB necessates the opening up of the capital, hence financial account in China. However, the 1997 Asian financial crisis, and the hyperinflation resulting from the dollarization in Latin America has led the Chinese regulators to be cautious in conducting currency liberalization and financial reforms. The opening up of the financial account with the liberalization of the exchange rate regime doubles the financial risks, increases the possibility of financial crises, and may result in the stagnation of economic growth. The function of the central bank as the lender of the last resort demands effective and prudential regulations for SIFIs, and also seeks to functioned to boost market confidence. At this critical turning point of the Chinese economy, defining the role of the shadow banking system, bringing them into the regulatory framework, and identifying risks created should be the priority of the financial regulators in China.Item North Korea-South Korea relations towards successful reunification(2016-01-28) Seedat, Betul OnugorenNo abstractItem Determinants of household savings and the effect of household savings on the stock market in South Africa and China: a comparative survey(2014-01-16) Mutyaba, FranklinSavings are vital in the functioning of any economy as the level of savings in an economy determines the resources available for investment. If firms plan to invest more than households save in an open economy, resources will have to be borrowed from overseas. Savings flow into the financial system and help provide funds for investment spending by firms. This study draws a comparison between the determinants of household discretionary savings in South Africa and China. This study as well investigates the effect of household savings on the stock market in South Africa and China. Empirical analysis was performed inorder to determine the relationship between household savings and various variables, and the effect of household savings on the stock market. Money and quasi money (M2) is the only significant variable and having a negative relationship with household savings in South Africa yet in China, inertia is present the lagged household saving rate is significant. In-order to figure out the impact of household savings on the stock market, we regressed household savings against stock market capitalization. The regression results revealed significance of the explanatory variable household saving in South Africa and insignificance in China. Household savings have an effect on the level of stock market capitalization in South Africa but not in China.Item Entrepreneurial orientation and internationalisation of multinational enterprises : a focus on firm performance in emerging markets.(2012-10-17) De Haaff, Dean NicholasThis research offers an insightful view of Entrepreneurial Orientation (EO), its relation to Internationalisation and Performance of Multinational Enterprises (MNEs) in three Emerging Markets; China, Malaysia and South Africa. 21 MNEs are reviewed, seven from each emerging market, over the research timeframe of 2005 to 2010. The issue at hand revolves around a thorough review of the internationalisation modes of the selected MNEs into various regions around the world and measuring their performance variables. The internationalisation modes were analysed against MNE EO, and the relation between their EO and their internationalisation. The method of the data collection utilised was mixed, obtaining all results from published MNE annual reports over the period of review and utilised both qualitative and quantitative data analysis in the research. Qualitative data was thematically analysed and coded for quantitative statistical analysis, whilst the financial data was statistically analysed accordingly. EO is highly interlinked with MNE internationalisation, as the very least on a construct level. EO strategies have shown support in correlating with MNE performance measures, but have differed between the emerging markets reviewed. It has shown that MNE focus with regard to EO strategy and internationalisation differs, with varying effects on their success. This is an area of academic research that has received very little, if any, review prior to this research. It offers bountiful opportunities to build on, and insightful findings that may be further reviewed.Item China and South Africa in the context of South-South cooperation: cooperation in the United Nations and World Trade Organisation(2010-03-03T08:40:14Z) Matshanda, Namhla ThandoABSTRACT South-South cooperation has become one of the most powerful tools at the disposal of developing countries for integration into the global economy. South-South relations that gained momentum in the aftermath of the Cold War have demonstrated a radical departure from the now archaic modes of engagement characteristic of the Cold War era. A handful of developing countries have emerged as de facto leaders of the South. These are countries that have taken significant rhetorical as well as practical steps towards strengthening South-South cooperation, as a means to counter the global domination of the affluent states of the North. This research report investigates the Post-Cold war adaptation of South-South cooperation exemplified by China and South Africa, and how they cooperate in international fora, with focus on the United Nations and World Trade Organisation. These are two countries that are strong advocates of South-South solidarity, and are regarded as leading powers of the developing world. Although with varying political and economic formations, the two countries have much in common. The most salient commonality is their evolving foreign policies. It is their evolving foreign policies that have enabled China and South Africa to take particular positions in international forums. There is significant commitment to the South agenda and this is demonstrated in UN and WTO engagements. However, there is ample room for improvement. Though committed to South-South cooperation, China and South Africa are still more committed to national interests. For South-South cooperation to move beyond rhetoric and periodic instances of cooperation there is an urgent need to redefine South-South cooperation. A new definition should involve a significant shift from the current abstract characterisation, to one that focuses on specific issues whose progress can be monitored and measured.