{"product_id":"the-red-dream-isbn-9781119896159","title":"The Red Dream","description":"\u003cp\u003e\u003cb\u003eAn eye-opening deep dive into the sources and consequences of how China has financed it’s rise to global economic prominence\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eThe Red Dream: The Chinese Communist Party and the Financial Deterioration of China\u003c\/i\u003e, veteran finance executive Carl Walter uses his unique experience in Chinese finance to deepen his exploration of how the Chinese Communist Party finances its obsession with GDP growth and social control. Overwhelmingly debt-fueled, the party’s financial strategy has driven an unsustainable growth in banking and state enterprise assets. Inevitably the party’s own financial health is being severely weakened and China’s future over the next decades put in doubt. You’ll also find:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eA discussion of the financial power of local governments and the Ponzi scheme created by their sale of land use rights\u003c\/li\u003e \u003cli\u003eHow China’s entry into the World Trade Organization gave rise to today’s China\u003c\/li\u003e \u003cli\u003eHow the party and China’s regulators enable banks to present outstanding performance metrics\u003c\/li\u003e \u003cli\u003eAn exploration of the party’s financial assets and liabilities since 1979\u003c\/li\u003e \u003cli\u003eExamples of financial crisis management and related costs incurred by China and the US\u003c\/li\u003e \u003cli\u003eA look at Japan’s experience as a potential guide for China future development\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAn essential read for anyone interested in international economics, geopolitics, and finance, \u003ci\u003eThe Read Dream\u003c\/i\u003e will also earn a place in the hands of finance professionals, bankers, policymakers, corporate strategists, and investors.\u003c\/p\u003e \u003cp\u003ePreface xi\u003c\/p\u003e \u003cp\u003eList of Abbreviations xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1: From Turning Point to Turning Point 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAn Abrupt About-Face 2\u003c\/p\u003e \u003cp\u003eThe Golden Age: A Short Story 4\u003c\/p\u003e \u003cp\u003eUnderlying Conditions 7\u003c\/p\u003e \u003cp\u003eThe Yin and the Yang of the China Dream 10\u003c\/p\u003e \u003cp\u003eConvergence 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2: The Shadow Fiscal System 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChina’s “Centralized” State and Localized Financing 24\u003c\/p\u003e \u003cp\u003eAspirational Central Finances, Fiscal Collapse and the 1994 Budget Law 29\u003c\/p\u003e \u003cp\u003eThe Continual Local Scramble for Funds 35\u003c\/p\u003e \u003cp\u003eThen There Was the Land but It Is Not Free, 1999–2007 38\u003c\/p\u003e \u003cp\u003ePaving the Country Over 45\u003c\/p\u003e \u003cp\u003eThe Vulnerability of Local Governments, Banks, and Enterprises 46\u003c\/p\u003e \u003cp\u003eImplications 48\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3: China’s Banks and the Deposit Bonanza 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eChina’s State Banks and the “Tree” Model of Banking 58\u003c\/p\u003e \u003cp\u003eCommand Lending and Funding 66\u003c\/p\u003e \u003cp\u003eFintech and Other Challenges to Bank Deposits 72\u003c\/p\u003e \u003cp\u003eBank Capitalization 80\u003c\/p\u003e \u003cp\u003eImplications 83\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4: Trees Can Grow to Heaven! 87\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEvolution of Chinese Balance Sheet Management Techniques 88\u003c\/p\u003e \u003cp\u003eOutcomes in Financial Engineering Chinese-Style 91\u003c\/p\u003e \u003cp\u003eChannels to Support State Bank Performance Metrics 93\u003c\/p\u003e \u003cp\u003eImplications 115\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5: Beautifying Bank Balance Sheets 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eParking Assets— the Interbank Market and “Repos” 120\u003c\/p\u003e \u003cp\u003eFlexible Loan Agreements 124\u003c\/p\u003e \u003cp\u003eLocal Government Bonds 127\u003c\/p\u003e \u003cp\u003eGovernment “Guidance” Funds 137\u003c\/p\u003e \u003cp\u003eOff-Balance-Sheet Items 138\u003c\/p\u003e \u003cp\u003eComments 146\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6: After 30 Years, Was Deng Xiaoping Right? 151\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Summary State Balance Sheet 152\u003c\/p\u003e \u003cp\u003eInefficient Investment Equals Extrabudgetary Funding 154\u003c\/p\u003e \u003cp\u003eThe Promise of the Stock Markets 156\u003c\/p\u003e \u003cp\u003eMassive Growth in Deposits 164\u003c\/p\u003e \u003cp\u003e“Opening” the Door to Foreign Investment 166\u003c\/p\u003e \u003cp\u003eExcessive Reliance on Debt 168\u003c\/p\u003e \u003cp\u003eDeterioration of State Finances 169\u003c\/p\u003e \u003cp\u003eSumming Up 173\u003c\/p\u003e \u003cp\u003eSo Was Deng Right, Can Capital Markets Be Used in a Socialist Economy? 178\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7: China versus the United States: Comparing the Costs of Financial Crises 183\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary Financial Crises, China and the United States 184\u003c\/p\u003e \u003cp\u003eComparisons of Crises 189\u003c\/p\u003e \u003cp\u003eMacro Comparisons and the Role of Central Banks 203\u003c\/p\u003e \u003cp\u003eComparisons of State Net Worth 206\u003c\/p\u003e \u003cp\u003eComments 208\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8: Japanese Bubbles 211\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBubbles and Japan’s Banking Crisis of the 1990s 212\u003c\/p\u003e \u003cp\u003eWhy Did Resolving Japan’s Banking Crisis Take So Long? 215\u003c\/p\u003e \u003cp\u003eMore Points of Comparison, China versus Japan 218\u003c\/p\u003e \u003cp\u003eComparative Cashflow Chains 222\u003c\/p\u003e \u003cp\u003eHow Might the Party Change Its Spots? 223\u003c\/p\u003e \u003cp\u003eThe Value of Chinese State Industrial Enterprise Assets 226\u003c\/p\u003e \u003cp\u003eComments 232\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9: Chinese Balloons 235\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Party’s Ruling Paradigm 238\u003c\/p\u003e \u003cp\u003eChinese Balloons 239\u003c\/p\u003e \u003cp\u003eConvergence Revisited 241\u003c\/p\u003e \u003cp\u003eAppendices 245\u003c\/p\u003e \u003cp\u003eSelected Bibliography 251\u003c\/p\u003e \u003cp\u003eIndex 257\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCarl E. Walter\u003c\/b\u003e worked in China for over three decades. He has done IPOs of state enterprises, worked in joint venture investment banks, helped build out onshore banking platforms and was a member of the board of a large Chinese bank. Fluent in Mandarin, he holds a graduate studies certificate from Peking University and a PhD from Stanford University. Carl is the co-author of \u003ci\u003eRed Capitalism and Privatizing China. \u003c\/i\u003e\u003c\/p\u003e  \u003cp\u003e\u003cb\u003ePRAISE FOR THE RED DREAM\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e“Carl Walter has an unparalleled experience in Chinese banking stretching over 30 years. In \u003ci\u003eThe Red Dream\u003c\/i\u003e he exposes the real cost of China’s obsession with GDP growth … \u003ci\u003eThe Red Dream\u003c\/i\u003e shows that not only are China’s financial foundations fragile but that the state net worth is illusionary.”\u003cbr\u003e\u003cb\u003e—Fraser JT Howie,\u003c\/b\u003e co-author, \u003ci\u003eRed Capitalism \u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e“Over a decade ago, Walter wrote the definitive text for a generation of China watchers trying to understand the mechanics of China’s financial system. His latest offering picks up where \u003ci\u003eRed Capitalism\u003c\/i\u003e left off, providing an invaluable accounting of the fragile financial dynamics underpinning the world’s second largest economy.”\u003cbr\u003e\u003cb\u003e—Dinny McMahon,\u003c\/b\u003e author of \u003ci\u003eChina’s Great Wall of Debt \u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e“Carl Walter’s \u003ci\u003eThe Red Dream\u003c\/i\u003e is a must-read. It is one of the most authoritative accounts yet of China’s economic development … Walter worked inside China’s financial system, as a banker, for more than three decades. Now, the author of \u003ci\u003eRed Capitalism\u003c\/i\u003e takes us on a guided tour of a political and economic system that continues to baffle leading economists.” \u003cbr\u003e\u003cb\u003e—David Barboza,\u003c\/b\u003e Co-founder, \u003ci\u003eThe China Wire \u003c\/i\u003e \u003c\/p\u003e\u003cp\u003e“Soviet-style socialism failed in China and elsewhere because it was unable to stop pouring resources into unproductive enterprises. Carl Walter shows that the CCP’s obsession with control has reproduced the same flaw in different guise, generating enormous and unsustainable debt. Unusually large by any meaningful standard, the problem portends at best the end of China’s steady economic advance, and a downside that could be much worse.”\u003cbr\u003e\u003cb\u003e—Andrew G. Walder,\u003c\/b\u003e \u003ci\u003eStanford University \u003c\/i\u003e\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990327443685,"sku":"NP9781119896159","price":27.5,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119896159.jpg?v=1761787372","url":"https:\/\/k12savings.com\/es\/products\/the-red-dream-isbn-9781119896159","provider":"K12savings","version":"1.0","type":"link"}