Along with an increasingly relaxed control in the financial sector in Japan and South Korea, their bond market has been growing rapidly, which is replacing the banks as the financing source to the large-sized enterprises.

The most striking feature of stock market risks is the strong externality, which is determined by the system risks.

In 2004, the De-Long case, the reform of financial institutions and the massive entry of foreign financial organizations into China have made China's enterprises pay more attention to strategic perspective in making investment in financial sector.

The main problems in the development of China's rural credit cooperatives are: the cooperatives only exist in name, deviating from the financial nature; the legal owner is absent resulting in internal control; redundant staff with low professional quality.

The challenges facing China's fund industry concentrate on the difficulties in selling and operation of the management enterprises.

From a global point of view, the requirement for capital abundance has become one of the major indicators for measuring a bank's overall management and risk-resistance capacity.

Growth rate in real estate investment has slowed down in the third quarter of 2004. The imbalance between supply and demand still exists and prices continue to go high.