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system is rationalised, it will be difficult to determine
whether the losses arise through an enterprise's
inefficiency or through imbalances in the price system.
(Note: According to the latest information, the Standing
Committee of the NPC finally approved the bankruptcy law
on 2 December 1986. It will be put into effect on a trial
basis three months after another law on state-owned
enterprises is introduced. The latter law is still under
discussion.)
9.
Apart from the broad economic reforms, some developments concerning individual industries are
noteworthy. Recently, China has decided to set up four
bases for the electronics industry in Beijing, Shanghai,
Jiangsu and Guangdong to develop high-technology products
like large-scale integrated circuits, colour TV picture
tubes, and computers and related software. China's
Ministry of Electronics is now seeking overseas
participation in this project.
10.
On financial development, the establishment of
short-term money markets including markets for bank loans
and commercial bills has improved the flows of funds among
(4) enterprises in different parts of the country
Recently, attention has also been focused on the development of capital markets. The issue of shares and
bonds is not new in China. In Shanghai, for instance,
more than 1,400 firms have issued shares and bonds
amounting to more than Rmb 225 million. The establishment of a securities market in Shenyang and a stock market in Shanghai are regarded as breakthroughs in that it is the
(4) Recently, an inter-bank money market has been
established between 27 cities in the Yangtze Region including Shanghai, Nanjiang, Wuhan and Chongqing.
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