financially than the Chinese economy, but China seems to be catching up with India in the wake of the global financial crisis … Chinese money markets, in contrast to the consensus projection that China is likely to experience net private capital outflows …

This paper reviews the steps that China has taken towards financial reform with a particular focus on capital account …, China's debt has doubled, reaching levels that are clearly above those of most emerging markets. This increases the risks … embedded in financial reform and, in particular, capital account liberalisation. At this juncture, however, China has no option …