China's Banking Reform Of Property Rights And The Structural Reform Study

Toward Chinese banking reform paths, the two theories, one claims market structure reform and another claims property right reform, have different ways of thinking. The former theory argues that the root of deficiency of Chinese banking industry is because of the high monopoly degree, which is formed in strict government-controlled environment. Hence, the key to enhance the performance of banking industry is to reform its market structure. However, the latter theory argues that the property right system plays a vital role in banking performance, especially the single property rights of state-owned banking system. Therefore, the key to enhance the performance of banking industry is to reform its property rightThis paper doesn't think the two theories have essential differences; on the contrary, they have internal logic relationship. Along this thought, I firstly analyzed the relationships between the market structure and market performance. Besides, we can't neglect the problem of property right institution when the theory of industrial organization, which was born in the economics institution of capitalism, is used on analyzing a transition economy.Secondly, I examined the different efficiency between state-owned and private property right based on some basic exploration on the meanings of property right and the institution of property right I concluded that reforming the single ownership structure of Chinese state-owned banking system is essential. But indeed, reforming the property right is not always a useful way to improve the efficiency. The beyond property—right argument claims that the competitive market environment plays an important role in reform of property rightAfter the analysis above, I emphatically examined the internal logic relationship between market structure reform and property right reform, and concluded that there are only differences in theoretical foundation and particular viewpoints between these two theories; furthermore, there're complementary relations between them; so we can't neglect any of these two viewpoints. At last, we got some policy implications for Chinese banking reform.