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China: This time it's different

Chinese banks can recapitalise as the stock market surges and international capital flows come.

It is significant that at the end of March the Chinese announced that henceforth mainland Chinese fund management companies would be able to invest in Hong Kong equities via the through train, but without needing to be approved for QDII, the quota system that previously governed outward investment.

THE Rubik's Cube of Chinese reform continues to click into place. It was interesting to see an article in The Economistlast week focusing on reform rather than the traditional obsession with the gross domestic product (GDP) number.

Over the last few weeks we have seen changes allowing