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has been opened as a conduit for aid from the World Bank
and the Asian Development Bank.
8.
The Bank of China (BOC) has been granted greater operational flexibility and responsibility in financing
foreign trade and supporting the export sector. But it is now rivalled by the China International Trust and
Investment Corporation (CITIC) which was set up in July
1979. This corporation is a state-owned enterprise operating under the direct leadership of the State Council and is authorised to absorb foreign capital, bring in
advanced technology and import up-to-date equipment to speed up China's modernization. Another rival of the BOC
was set up in 1986 the re-vitalized Communications Bank of China (CBOC). It has been given permission to deal in
foreign currencies, engage in support services for foreign
trade, and handle both long-term and short term loans.
9.
The following chart illustrates the broad
structure of China's financial system and institutions:
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