Special Terms 1. credit crisis a reduction in the general availability of loans or credit or a sudden tightening of the conditions required to obtain a loan from the banks 2. financial innovation Generation of new and creative approaches to securities money management or investing .overheating: An economy that is expanding so rapidly that too much money is chasing too few goods and economists fear a rise in inflation
Special Terms 1.credit crisis： • A reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from the banks. 2.financial innovation： • Generation of new and creative approaches to securities, money management or investing. 3. overheating： • An economy that is expanding so rapidly that too much money is chasing too few goods and economists fear a rise in inflation. 11
4. capital-intensive sector An industry that requires large amounts of capital machinery and equipment to produce goods 5. state-run firm a legal entity created by a government to undertake commercial activities on its behalf 6. institutional investor a non-bank entity or organization such as investment companies and mutual funds that invests in large quantities
4. capital-intensive sector： • An industry that requires large amounts of capital, machinery and equipment to produce goods. 5. state-run firm： • A legal entity created by a government to undertake commercial activities on its behalf. 6. institutional investor： • A non-bank entity or organization such as investment companies and mutual funds that invests in large quantities. 12
7. insider trading The trading of a corporation' s stock or other securities (e. g. bonds or stock options by individuals with potential access to non-public information 8. stamp tax: Tax levied on certain legal transactions such as the transfer of a property such as building copyright, land, patent, and securities ·9. stimulus package: a plan or a series of measures taken by a government to ump-start its ailing economy, generally as a part of its fiscal policy
7. insider trading： • The trading of a corporation's stock or other securities (e.g. bonds or stock options ) by individuals with potential access to non-public information. 8. stamp tax： • Tax levied on certain legal transactions such as the transfer of a property such as building, copyright, land, patent, and securities. • 9. stimulus package： • A plan or a series of measures taken by a government to ump-start its ailing economy, generally as a part of its fiscal policy. 13
Summary China is the only major economy that is likely to show significant growth this year, because it is the only one that routinely breaks every rule in the economic textbook In a time of crisis, China' s officials can pick from traditional market tools like their Western counterparts, and from the arsenal of chinas economic system early last year, as the housing market was overheating they simply ordered bankers to cut back on housing loans: then as home sales began to fall, they offered market incentives, like lower taxes on home purchases
Summary • China is the only major economy that is likely to show significant growth this year, because it is the only one that routinely breaks every rule in the economic textbook. • In a time of crisis, China's officials can pick from traditional market tools, like their Western counterparts, and from the arsenal of China’s economic system. Early last year, as the housing market was overheating, they simply ordered bankers to cut back on housing loans: then as home sales began to fall, they offered market incentives, like lower taxes on home purchases. 14
In fact, the main reason China is not slowing as fast as the other big five economies is its capacity for macro economic control A command-and-control system run by relatively skilled technocrats allows China to get things done, quickly "I'm always struck by the ability of the chinese state to move in a coherent manner and to marshal its people and the resources of the country to a common target , noted David Murphy head of clsa's china Reality research division in a recent report on the country's efforts to bolster growth
• In fact, the main reason China is not slowing as fast as the other big five economies is its capacity for macroeconomic control. • A command-and-control system run by relatively skilled technocrats allows China to get things done, quickly. "I'm always struck by the ability of the Chinese state to move in a coherent manner and to marshal its people and the resources of the country to a common target," noted David Murphy, head of CLSA's China Reality research division, in a recent report on the country's efforts to bolster growth. 15