The Asia-Pacific region, especially South-East Asia, has become one of the most popular areas for investment in the world. Many experts predict that this region will become the new economic centre of the world in the next century. China has become a major player in the global economy and has helped sustain world economic expansion, especially in the Asia Pacific region. Along with other Asian economies including Taiwan, China has been accumulating reserves, thereby supporting the present state of exchange rates in major regions worldwide. Despite China's tremendous growth and fast paced economic development, there remain areas of reform that are simply not able to keep up with the economic pace. The most pressing concern is evidently the financial system.