Time for financial sector reform

Perhaps structured financial products occupy less space on Chinese banks' balance sheets and payoffs of the Annapurna (a form of option contract) sort are less discussed in trading floors in Zhejiang province. However, that is not to say that the financial system in China is any less complex than elsewhere. In some respects, identifying the underlying vulnerabilities of a financial system that covers a large group of very diverse provinces and rapidly evolving economic structure is more challenging.