Latest

Trading Restriction as a Channel of Financial Contagion—Evidence from China’s Stock Market

Laura Xiaolei Liu, Jiajie Xu, Ninghua Zhong, Oct 18, 2017

China’s stock market imposes various trading restrictions such as daily price limits and trading suspension rules, which are intended to stabilize the market during turmoil. During China’s stock market crash in the summer of 2015, these trading restrictions made many highly valued stocks non-tradable and consequently caused mutual funds facing redemption pressure or with precautious concerns to sell other tradable stocks, exacerbating their price drops.

China’s Great Housing Boom

Kaiji Chen, Yi Wen, Oct 11, 2017

We provide a theory to explain China’s excessive housing price growth in the most recent decades, despite a high vacancy rate and a high rate of return to capital. We argue that China’s housing prices contain a significant and rapidly growing bubble component. This growing housing bubble generates a substantial degree of welfare losses and resource misallocation in the capital market, which are prolonging economic transition and hindering aggregate economic growth.

Book Synopsis New Cycle or Old (Guaranteed) Bubble?

Ning Zhu, Oct 04, 2017

It seems necessary that one gains some deeper understanding of the sources of China’s phenomenal economic growth. Apart from all well-founded extant explanations, my recent book Guaranteed Bubble argues for another important yet previously overlooked source: the guarantees provided by the Chinese government.

Book Synopsis The Making of an Economic Superpower: Unlocking China’s Secret of Rapid Industrialization

Yi Wen, Sep 27, 2017

This book argues that China’s rapid industrialization since 1978 can be attributed to its rediscovery of the secret recipe of the original Industrial Revolution. The secret recipe is not based on institutional changes per se but rather the sequential creation of mass markets to support mass production. Market creation requires a strong state and appropriate industrial policies because mass markets are a public good that is extremely costly to create and can only be created through stages and under enormous political stability and social trust.

Recent

Household Finance in China

Russell Cooper, Guozhong Zhu, Sep 20, 2017 

Credit Expansion and Allocation Dynamics under Economic Stimulus

Lin William Cong, Jacopo Ponticelli, Sep 13, 2017 

Resolving China’s Corporate Debt Problem

Wojciech S. Maliszewski, Serkan Arslanalp, John Caparusso, José M. Garrido, Si Guo, Joong Shik Kang, W. Raphael Lam, T. Daniel Law, Wei Liao, Nadia Rendak, Philippe Wingender, Jiangyan Yu, Longmei Zhang, Sep 06, 2017 

Are the Most Aggressive Investors in China Actually Informed?

Christian T. Lundblad, Zhishu Yang, Qi Zhang, Aug 30, 2017 

How did China Move Up the Global Value Chains?

Hiau Looi Kee, Heiwai Tang, Aug 30, 2017 

Air Pollution, Health Spending and Willingness to Pay for Clean Air in China

Shanjun Li, Deyu Rao, Nahim Bin Zahur, Panle Jia Barwick, Aug 23, 2017