Huge losses on products sold as part of China's QDII scheme might have had more to do with suspect products being sold by a corrupt banker than the global market turmoil of the past year.
China's State Council recently approved plans to reform both the shareholding and management structure of China Export and Credit Insurance Corporation (Sinosure).
Local banking regulators have begun carrying out stress tests to help gauage the risks posed by the huge amount of new loans issued over the past year.
The Ministry of Commerce recently received a proposal suggesting that China should draw from its foreign reserves and extend loans to developing countries in order to boost their demand for Chinese exports.
The Economic Observer sat with Wu Xiaoling to discuss how the stimulus package is being implemented and whether China's economy really has recovered from the downturn.
China's national fiscal revenues in May grew by 4.8% over last year's figure, registering its first positive year-on-year growth for the first time this year.
China's banking watchdog fears bad performing loans would rise, as Chinese banks compete with each other to lend to local government-led stimulus projects.