A Bridge on Economic Issues between China and the World
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Equity Financing and Exports: Evidence from IPO Approvals in China
Robin Kaiji Gong, Yao Amber Li, Stephen Teng Sun, Shang-Jin Wei, Jun 03, 2026Access to public equity through IPOs enables Chinese exporters to expand into more foreign markets by financing the intangible investments and risk taking that bank credit alone cannot support, suggesting that well-functioning equity markets are a critical but overlooked ingredient for export-led growth in developing countries.
Geographic Imbalances in Access to Credit: The Roles of Branch Networks, Synergies, and Market Power
Victor Aguirregabiria, Robert Clark, Hui Wang, Jun 10, 2026Concerns about unequal access to credit across regions have become central to policy debates in many economies. Financial integration does not necessarily guarantee that funds flow to areas where credit demand is highest. Instead, geographic frictions, local market power, and institutional constraints may generate persistent “credit deserts”—regions with limited access to external finance despite substantial demand for credit.
Industry/Policy View China Subsidy Estimates Depend on an Interest-Rate Yardstick
Yuankun Li, Jul 01, 2026Before subsidy figures are used to justify new trade measures, the benchmark behind below-market borrowing should be made comparable across countries. The central issue is that the OECD/MAGIC treatment makes China's BMB estimate LPR-based, and this can make measured borrowing support several times larger than estimates based on more comparable interbank or government-bond benchmarks.
When Forward-Looking Accounting Meets an Unexpected Crisis: Does the Expected Credit Loss Model Amplify Economic Downturns?
Chen Chen, Difang Huang, Jun 24, 2026This article examines whether the expected credit loss (ECL) model, introduced to make bank provisioning more forward-looking, can inadvertently amplify downturns when a crisis arrives without warning. Using China’s staggered ECL adoption and granular loan-level data from the COVID-19 period, we show that ECL banks cut lending more sharply, raised spreads, and became more selective than incurred credit loss banks serving the same borrowers, with persistent consequences for firms.
From Heat to High-Tech: How Innovation Responds to Climate Change
Xianling Long, Zhiqiang Wang, Jul 01, 2026Climate change is driving firms to innovate—not just where heat strikes, but through shifting demand across the economy. Evidence from China shows that rising temperatures stimulate both adaptation and mitigation technologies. As households, firms, and governments respond to climate risks, new market signals travel through product markets and supply chains, encouraging higher-quality climate-related innovation across sectors.
