Financialization

CQ 266 pp. 325-344 2026-06-04 Original Bureaucratic Restructuring and the State-led (De-)Financialization of Local Governance in China Xuchen Zhang, Fenghua Pan Abstract Abstract State-led financialization has emerged as a salient feature of local governance in China, yet it remains underexplored through the lens of bureaucratic restructuring. This paper traces the evolution of local financial agencies since 2002 through four distinct stages: local financial offices ( jinrongban ), financial bureaus ( jinrongju ), financial regulatory bureaus ( jinrong jianguanju ) and financial commissions ( jinrongwei ). Initially, local governments established jinrongban to harness financial capital for regional development. By proactively connecting local firms with capital markets to facilitate corporate listings, they embedded financial logic into local governance, reflecting local state-led financialization. Subsequently, the central government formalized these bodies into jinrongju with expanded mandates, deepening state-led financialization. Later, it systematically devolved regulatory responsibilities and renamed them jinrong jianguanju , elevating regulatory functions to a top priority, illustrating how the central government selectively steered the direction of financialization. Ultimately, provincial agencies were reorganized into jinrongwei and stripped of development functions, while city-level counterparts were largely closed, signifying a shift towards central state-led de-financialization. This trajectory was driven by shifting central–local dynamics, as early bottom-up initiatives were superseded by top-down control. The bureaucratic restructuring examined in this study offers new insights into the state-led (de-)financialization of local governance in China.

GOV 39/3 2026-05-04 Original The Financialization of European Social Care: A Descriptive Network Analysis Simon Demuynck, Wouter Van Dooren Abstract ABSTRACT Social services in Europe underwent significant changes in recent decades. Using our unique dataset covering the ownership networks of over 100,000 child care, disability care, and care for older adults facilities across 27 EU countries and the UK, we conduct a macro‐level network analysis to answer (1) who the main financial industry actors are in European social care markets; (2) where in these markets financialization is taking place; and (3) what position the financial industry occupies in the ownership networks of social care. The analysis reveals how a significant part of European social service facilities across differing types of European welfare states is indirectly owned by financial corporations. We demonstrate that network approaches can provide a more effective method for computing variables related to service ownership, as they capture indirect ownership links not visible in traditional datasets. The highly networked and financialized nature of social provision raises questions about systemic risks in social care sectors. Moreover, financialization could also erode the government's ability to achieve public goals in social care.