A Bridge on Economic Issues between China and the World
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Feedback Trading and the Chinese Put Warrants Bubble
Neil D. Pearson, Zhishu Yang, Qi Zhang, Jul 27, 2022There was a bubble in the prices of put warrants traded on the Shanghai and Shenzhen stock exchanges during the summer of 2007. We use investor trading records from a large securities firm to show that put warrant investors engaged in a particular form of feedback trading. This feedback trading exacerbated an initial run-up in put warrant prices caused by a change in the stock transaction tax, and created the bubble.
The Quiet Revolution in Women’s Human Capital and the Gender Earnings Gap in the People’s Republic of China
Zhengyang Li, Guochang Zhao, Jul 08, 2020Since the 1980s, girls’ educational attaintment increased more quickly than boys’. As a result, the gender education gap decreased and even reversed in China. How does the gender earnings gap change in the face of increasing female human capital? What are the implications for the Chinese gender earnings gap in the future? This column will shed light on this interesting topic within and across cohorts.
Does Import Competition Harm Innovation? Evidence from Firm-level Data in China
Qing Liu, Ruosi Lu, Yi Lu, Tuan Anh Luong, Oct 06, 2021Twenty years ago, China’s entering the World Trade Organization (WTO) was a catalyst for its economic development and propelled China into becoming one of the most important economies in the world. But massive import tariff reductions allowed more import competition, which raised concerns that innovation would be curbed. Tuan Luong, from De Montfort University, and his co-authors, Qing Liu, Ruosi Lu, and Yi Lu, discuss the impacts of import competition on domestic innovation...
English Language Requirements and Educational Inequality in China
Hongbin Li, Lingsheng Meng, Kai Mu, Shaoda Wang, May 29, 2024The introduction of the English listening test in the NCEE has exacerbated educational inequality between urban and rural areas in China, thereby affecting the college admission prospects and future income of rural students.
Does Spatial Misallocation in China’s Housing and Land Markets Drive Up Housing Prices?
Yongheng Deng, Yang Tang, Ping Wang, Jing Wu, Mar 23, 2022We documented pervasive spatial misallocations in the housing and land markets in China. We find larger cities with more competitive land markets and strict land supply restrictions have fewer subsidies in housing sales, and consequently a higher housing price compared to its frictionless benchmark. Removing frictions brings welfare gain because more individuals live in larger cities.
