A Reconnaissance of the Research on Islamic Finance in China

Abstract

Islamic finance is a unique segment of the global financial system. It is inspired by the teachings of Islam, and differs a lot from other forms of financial markets in the aspects of regulations and practices. Modern Islamic finance is based on two principles: first is the overall criticism on all kinds of (Riba) interest; second is the galvanic focus on the concept of 'profit and loss sharing'. Islamic financial system took on a good risk-resistant capability during the global financial crisis in 2008. Hence, it attracted the attentions of many scholars all over the world. This paper is a brief summary as well as a comment on the study of Islamic finance system in China. It covers the studies on the background, development, main characteristics, opportunities, and challenges of the Islamic finance system with special reference to China.