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Chinese Economic Growth Doesn’t Appear Overstated, but Its Heavy Reliance on Credit May Be a Cause for Concern

Hunter Clark, Jeff Dawson, Maxim Pinkovskiy, Xavier Sala-i-Martin, Jun 20, 2017, 1322 reads

Are China's official GDP growth number exaggerated? Hunter Clark, Jeff Dawson and Maxim Pinkovskiy from the New York Fed and Xavier Sala-i-Martin from Columbia University use satellite measurements of the intensity of China’s nighttime light emissions to proxy for GDP growth. Their estimate of Chinese GDP growth, since 2012, was never appreciably lower, and was in many years higher, than the GDP growth rate reported in the official statistics.

Dollar Appreciation and Asian Economies

Zheng Liu, Mark M. Spiegel, Andrew Tai, Jun 20, 2017, 1275 reads

The sharp appreciation of the U.S. dollar between mid-2014 and mid-2015 raised concerns in the U.S. and its major trading partners. Zheng Liu, Mark Spiegel, and Andrew Tai from the San Francisco Fed evaluate the impact of dollar appreciation on economic conditions in the United States and its three major Asian trading partners: South Korea, Japan, and China.

Industry/Policy View Assessing China’s Financial Risk: Evidence from the Stock Market

Hao Zhou, Haibin Zhu, Xiangpeng Chen, Jul 14, 2017, 1246 reads

VoxChina welcomes views from industry reports and policy reports.This piece summaries the views about China’s financial risk from - Hao Zhou, the PBC School of Finance at Tsinghua University, Haibin Zhu, J.P. Morgan and Xiangpeng Chen, the PBC School of Finance at Tsinghua University.

Equilibrium Consequences of Corruption on Firms: Evidence from China’s Anti-Corruption Campaign

Haoyuan Ding, Hanming Fang, Shu Lin, Kang Shi, Aug 23, 2017, 1241 reads

The announcement on May 17, 2013 that CPC’s Central Commission for Discipline Inspection (CCDI) would start to conduct several rounds of inspections of provincial governments, may serve as a rare natural experiment to examine the equilibrium consequences of corruption on firms. Professors Haoyuan Ding of Shanghai University of Finance and Economics, Hanming Fang of the University of Pennsylvania, and Shu Lin and Kang Shi, both of The Chinese University of Hong Kong exploit event studies to show that the stock market overall reacted positively to the CCDI announcement, and they also show that there is interesting heterogeneity across firms in their reactions to the news. They argue that the CCDI announcement on May 17, 2013 has likely triggered an expectation of norms change of bureaucratic behavior.

Are the Most Aggressive Investors in China Actually Informed?

Christian T. Lundblad, Zhishu Yang, Qi Zhang, Aug 30, 2017, 1141 reads

Using a unique Chinese data set capturing the trading behavior of particularly aggressive investors, we provide new evidence that is consistent with the presence of informational advantages. Critically, an advantage of our data is that we can also directly identify several plausible channels through which such an informational advantage could arise. Specifically, return predictability around key value-relevant events is most pronounced in the presence of aggressive traders who share the same geographic location as the firms in which they trade.