Understanding the Relationship Between China’s Banking System and State-Owned Enterprises: Part Two

In this two-part special report, we explain, through a series of Q&A, why the government has structured its banking industry to favor the five state-owned commercial banks (SOCBs) and why calls for reform are likely to meet resistance. Part Two examines the methods by which the central government steers capital to state-owned enterprises via SOCBs, as well as the pressures for, and resistance to system reform.