Carl E. Walter lived in China for twenty years and actively participated in numerous financial reforms. He played a major role in China's groundbreaking first overseas IPO in 1992, as well as the first listing of a state-owned enterprise on the New York Stock Exchange in 1994. He was a member of the Management Committee at China International Capital Corporation, China's first and most successful joint venture investment bank, where he supported a number of significant domestic stock and debt underwritings for major Chinese corporations. More recently, he helped build one of the most successful and profitable domestic security and currency trading operations for a major global investment bank. Fluent in Mandarin, he holds a PhD from Stanford University and a graduate certificate from Beijing University. He currently lives in New York where he acts as an independent consultant. Fraser J. T. Howie studied Natural Sciences (Physics) at Cambridge University and Chinese at Beijing Language and Culture University. For nearly twenty years he has been trading, analyzing, and writingabout Asian stock markets. During that time he has worked in Hong Kong, trading equity derivatives at Bankers Trust and Morgan Stanley. After moving toChina in 1998, he worked in the sales andtrading department of China International Capital Corporation followed by a stint with China M&A Management Company. He has contributed to the SCMP, AWSJ, China Economic Quarterly,and China Economic Review as well as being a regularChina commentator on CNBC, BBC, Al Jazeera, and Bloomberg. Currently, he is a Managing Director at a leading Asia Pacific Brokerage firm in Singaporehelping international investors invest in both the Indian and Chinese markets.

Chapter 1: ““One short nap took me all the way back to before 1949." 1978-2008: 30 years of Opening 1992-2005: 13 years of Reform 2005: the end of Reform China is a family business Chapter 2: China's fortress banking system Banks are China's financial system Crisis and bank reform, 1994 and 1998 China's fortress banking system in 2009 The sudden thirst for capital and cash dividends, 2010 Chapter 3: The fragile fortress The foundation of China's banking machine Bad bank performance and its implications, 2009 The “perpetual put" option to PBOC China's new post-Lehman Brothers banking model Implications Chapter 4: China's captive bond market Why does China have a bond market? Yield curves in China The base of the Pyramid: “protecting" household depositors Chapter 5: The struggle over China's bond markets China Development Bank, the Ministry of Finance and the Big 4 Banks People's Bank of China, NDRC and CSRC: corporate bonds Local governments unleashed China Investment Corporation: the lynchpin of China's financial system Cycles in China's financial markets Chapter 6: Western finance, SOE reform and China's stock markets Why does China have stock markets? What the stock markets gave China Chapter 7: The National Team is China's government The National Team, the Organization Department, Huijin and SASAC Chinese stock markets: Who benefits? A casino or a success or both? Implications Chapter 8: The Forbidden City The Emperor of Finance Behind the vermillion walls Red capitalism means leverage The Emperor's new financial playthings Appendices