Journal articles on the topic 'Capital market (China)'
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Santosa, Budi. "INTEGRASI PASAR MODAL KAWASAN CINA - ASEAN." Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan 14, no. 1 (June 1, 2013): 78. http://dx.doi.org/10.23917/jep.v14i1.162.
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This study aims to analyze the level of capital market integration ASEAN and China. Analysis tool used is Vector Error Correction Model (VECM). The results showed that capital markets of Malaysia, Philippines, Singapore, Thailand, and China have a positive effect on Indonesian capital markets, but the Indonesian capital market does not affect the capital markets of other countries. Singapore capital market has a positive effect on capital markets of Indonesia, Malaysia, Thailand, and China, except for the Philippines. China's capital market only affects the capital market in Singapore. Singapore capital market and China have complete integration because both affect each other. Philippine capital market only affects Indonesian capital market. Indonesian capital market is easily influenced by the fluctuation in capital markets in the ASEAN region and China. Singapore capital market is in a strong position. While the Philippine capital market are relatively more segmented.
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Tam, On Kit. "Capital market development in China." World Development 19, no. 5 (May 1991): 511–32. http://dx.doi.org/10.1016/0305-750x(91)90191-j.
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Zhou, Xueguang, and Yun Ai. "Capitalism without Capital: Capital Conversion and Market Making in Rural China." China Quarterly 219 (August 22, 2014): 693–714. http://dx.doi.org/10.1017/s0305741014000757.
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AbstractSituated in an agricultural township in northern China, this study examines the rise of produce markets in rural China in the face of a chronic shortage of financial capital. Drawing on theoretical ideas in economic sociology, we explicate the mechanisms of gift exchange and credit taking and the conditions under which these mechanisms are used to mobilize financial capital and to facilitate market transactions in the absence of financial capital. We illustrate these issues and ideas using our fieldwork research on different produce markets and entrepreneurial activities.
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LIN, Lin. "Venture Capital Exits and the Structure of Stock Markets in China." Asian Journal of Comparative Law 12, no. 1 (January 18, 2017): 1–40. http://dx.doi.org/10.1017/asjcl.2016.15.
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AbstractExisting literature suggests a strong relationship between a vibrant venture capital market and an active stock market: venture capital flourishes when venture capitalists can readily exit from successful portfolio companies through IPOs, and IPOs are in turn facilitated by active and efficient stock markets. This article uses China as a case study to explore the connection between the stock market and venture capital market. Through empirical studies, this article confirms the existing literature by demonstrating a close connection between the stock market and venture capital market in China. It also refines the existing literature by finding that, for venture capital availability, laws and policies also matter in China. Strong and sustained law reforms and government policies aimed at improving the institutional structure and regulatory environment of the stock market can facilitate venture capital-backed exits, which in turn lead to an increase in new venture capital availability in China. Nonetheless, numerous IPO closures have led to freeze-ups in China’s venture capital market. Also, there remain a multiplicity of institutional impediments to the efficient operation of the stock market and the effective implementation of IPO reforms in China. These may in turn hinder the development of the Chinese venture capital industry.
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Priyono, Achmad Agus, and Ety Saraswati. "The Covid Pandemic Testing the Resilience of the United States, China and Indonesia Capital Markets." Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) 5, no. 1 (February 16, 2022): 176–91. http://dx.doi.org/10.31538/iijse.v5i1.1782.
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There are two main factors that influence the rise and fall of the index, namely internal factors and external factors. The external factor currently experiencing volatility in the stock market is the coronavirus outbreak. Where the presence of the Coronavirus on this earth has caused panic in various parts of the world. The epidemic attacks various levels of society, especially for those who have congenital diseases. This study aims to analyze the resilience of the capital markets in the United States, China and Indonesia in the 60 days before and after the positive confirmation of COVID-19 in each country. The variable of capital market resilience in the United States is used as a proxy for the DJI index, while the resilience of the capital market in China is used as a proxy for the SSEC index, while the resilience of the capital market in Indonesia is used as a proxy for the IDX index. The paper tries to determine whether there are differences in the resilience of the capital market before and before the covid outbreak in the American, Chinese and Indonesian capital markets. The results of the study prove that the Covid outbreak has had a very bad impact on the stock markets of Indonesia and the United States. The tool on the test used to prove that there is a difference in resilience in the capital markets in Indonesia and the United States in the 60 days before and after being confirmed positive for Covid. Meanwhile, in the capital market in China, it was found that there was no difference in the resilience of the capital market in the 60 days before and before being confirmed positive for Covid. This condition proves the country's success in handling and controlling the covid outbreak.
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Treisya, Sintikhe Mega, and Robiyanto Robiyanto. "Volatilitas Harga Emas dan Minyak pada Integrasi Pasar Modal Indonesia dengan Pasar Modal Asia." AFRE (Accounting and Financial Review) 4, no. 2 (December 20, 2021): 194–205. http://dx.doi.org/10.26905/afr.v4i2.6291.
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Capital market integration can be influenced by various variables, such as the volatility of gold and oil prices. The purpose of this study is to analyze the volatility of gold and oil prices on the integration of the Indonesian capital market with the Asian capital market. This study uses secondary data on daily closing prices of gold and oil (West Texas Intermediate and Brent North Sea) along with the Indonesian capital markets (JKSE), Hong Kong (HSI), South Korea (KOSPI), India (NIFTY 50), China (SSEC), Singapore (STI) during the period January 2019 to October 2020. This study uses the DCC-GARCH method to see the dynamic correlation between the capital market, and the GARCH method to analyze the volatility of gold and oil prices on the integration of the Indonesian capital market with the Asian capital market. The results of the study show that there is a positive and negative dynamic correlation between the capital markets, thus proving that the movement of the Indonesian market with other markets tends to vary. The results show that only the volatility of Brent oil has a negative effect on the integration of the Indonesian capital market with the Asian capital market
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Lin, Lin. "Engineering a Venture Capital Market: Lessons from China." Columbia Journal of Asian Law 30, no. 2 (January 1, 2017): 160–220. http://dx.doi.org/10.52214/cjal.v30i2.9251.
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This is the first article that analyzes Professor Ronald Gilson’s theory of “simultaneity” in engineering a venture capital market in the context of China. Based on both quantitative and qualitative data collected by the author, this article analyzes how China has created the fastest developing and the largest engineered venture capital market in the world within three decades. It concludes that the rise of venture capital in China is attributable to (1) increasing capital supply through various governmental programs, easing regulatory barriers towards institutional and foreign investors, providing tax incentives and improving exit environment; (2) enhancing the availability of financial intermediaries by introducing the limited partnership that creates an efficient relationship between venture capitalists and investors; and (3) encouraging entrepreneurship by improving the regulatory environment for small businesses. Through these measures, China has facilitated the simultaneous availability of capital with the appetite for high-risk, long-term investments and the emergence of a class of entrepreneurs with the skills and incentives to put that capital to work. One key factor to the rapid development of the Chinese market has been its increased reliance on market forces in allocating capital. On the other hand, a residual degree of bureaucratic allocation prevents the Chinese regime from being fully efficient. China serves as an (imperfect) model for other governments seeking to engineer a venture capital market where enfettered market forces have failed to do so.
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WAN, Jing. "The Shanghai-Hong Kong Stock Market." East Asian Policy 07, no. 03 (July 2015): 36–45. http://dx.doi.org/10.1142/s1793930515000264.
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The Stock Connect scheme launched on 17 November 2014 was the first mutual market access between mainland China and Hong Kong stock markets. It is the biggest move ever in the opening up of the capital market. Experiences accumulated will be of great value to mainland regulators who will decide on how these experiences could be utilised for China’s future opening up of its capital markets and for accelerating renminbi internationalisation.
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Zhang, Ping, Jieying Gao, Yanbin Zhang, and Te-Wei Wang. "Dynamic Spillover Effects between the US Stock Volatility and China’s Stock Market Crash Risk: A TVP-VAR Approach." Mathematical Problems in Engineering 2021 (April 9, 2021): 1–12. http://dx.doi.org/10.1155/2021/6616577.
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Due to the increasing linkage of China and the US stock markets today, we constructed a TVP-VAR model to study the dynamic spillover effects between the US stock volatility and China’s stock market crash risk. We found dynamic spillover effects are constantly strengthening between US stock volatility and China’s stock market crash risk: when the US stock volatility increases, China’s stock market crash risk increases. In addition, the gradual improvement of financial market openness in China, the short-term capital outflow from China, and the depreciation of the RMB exchange rate will increase China’s stock market crash risk. And, the impacts of short-term capital outflow from China are more significant. Further, the increase in China’s stock market crash risk will lead to the decline of the US stock volatility, which may be due to the flight to quality.
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Ibrahim, Kabiru Hannafi, Dyah Wulan Sari, and Rossanto Dwi Handoyo. "Nigeria-China Bilateral Trade Relations: Is There Market Opportunities in China?" Intermestic: Journal of International Studies 4, no. 2 (May 31, 2020): 139. http://dx.doi.org/10.24198/intermestic.v4n2.3.
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This study used normalized revealed sectoral comparative advantage, import demand share, growth identification and facilitation framework to identify market opportunities for Nigeria in the Chinese markets over the period 1988-2017. Our findings revealed that Nigeria has a steady and long-term comparative advantage in few commodities and there is limited scope for Nigeria to improve on its balance of trade due to limited export potentials. Furthermore, sixteen market opportunities were identified, out of which fourteen are stable and growing markets. Our findings also revealed that these market opportunities can't all be meet by Nigeria, as these commodities were not exportable due to poor competitive position and highly capital-intensive nature of the commodities. These findings are not only relevant to academics but also for policy making.
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Osabuohien-Irabor, Osarumwense. "Testing for causality-in-mean and in-variance among the U.S., China, and some Africa capital markets: A CCF approach." Journal of Economics and Management 43 (2021): 131–52. http://dx.doi.org/10.22367/jem.2021.43.07.
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Aim/purpose – Owing to the huge risk occasioned by negative contagion effects associ- ated with financial market linkages, markets participants and academia have continued to examine the capital market cross country interdependence at different levels. In this paper, we examined the causal relationships among the U.S., China and some top Afri- can capital market indexes. Design/methodology/approach – To examine the mean and variance causal effects, we estimated a univariate AR-EGARCH model for all capital market indexes. Then em- ployed the residual-based two-step bivariate cross-correlation function (CCF) test devel- oped by Cheung & Ng (1996). The test statistics had a well-defined asymptotic standard distribution that was robust to distributional assumptions. Findings – We detected both the feedback and unidirectional causality effects among African capital markets. These results show that African financial markets are still not fully integrated within the African continent. Expectedly, the results from our empirical analysis showed the existence of a unidirectional causality both in mean and variance from the U.S. and Chinese markets to African capital markets. This demonstrated that events in the U.S. and China are not irrelevant to African markets. Research implications – Owing to the fact that knowledge of other financial markets provides adequate information about a market situation, the results from this research paper will be helpful for the policymakers of African countries in shaping their econom- ic policies, help investors diversify investments with less risk, and international portfolio managers make portfolio allocation decisions. Originality/value/contribution – This paper examined the mean and risk dynamics of three top African, the U.S., and Chinese capital markets with their inter-dependence using the CCF approach. Furthermore, to the best of our knowledge, no previous re- search paper on this issue exists. Keywords: causality-in-mean, causality-in-variance, capital market, cross-correlation function. JEL Classification: G10, F31, C20
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Martin, Martin, and Yunita Yunita. "Volatility Spillover pada Pasar Saham Indonesia, Cina, dan India." Binus Business Review 1, no. 1 (May 26, 2010): 40. http://dx.doi.org/10.21512/bbr.v1i1.1020.
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Globalization and advanced information technology easing us for obtaining information from global stock markets. With that condition, volatility in domestic capital market could be affected by volatility from global stock markets. The effect would have greater impact if the capital markets are located in same region. That concern will be answered in this research, about volatility spillover in Indonesia, China, and India capital market. This research using daily return data from each country indices from January 1, 2006 until April 20, 2010 applying econometric model GARCH (1,1). The result showing us that there is bidirectional volatility spillover between Indonesia and India. Meanwhile, there is only single way volatility spillover between Indonesia and China.
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Peixin, Yang. "On Building a Socialist Capital Market in China." Chinese Economic Studies 20, no. 2 (December 1986): 67–74. http://dx.doi.org/10.2753/ces1097-1475200267.
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WAN, Jing. "Capital Market Liberalisation in China: Progress and Challenges." East Asian Policy 09, no. 04 (October 2017): 92–100. http://dx.doi.org/10.1142/s1793930517000381.
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China’s capital market has continued to open up to the world despite disruptions. In the stock market, opening up involves the Shanghai-Hong Kong and the Shenzhen-Hong Kong Stock Connect schemes. In the exchange rate market, renminbi joined the International Monetary Fund’s Special Drawing Rights basket in 2015. In July 2017, China and Hong Kong launched the “Bond Connect” programme. In the near future the focus of capital account liberalisation is likely on the bonds market.
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Qi, Li. "Capital flows and domestic market integration in China." Journal of Chinese Economic and Business Studies 8, no. 1 (February 2010): 67–94. http://dx.doi.org/10.1080/14765280903488355.
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Chan, Kenneth, Jennifer Lai, and Isabel Yan. "Is the Provincial Capital Market Segmented in China?" Review of Development Economics 17, no. 3 (July 17, 2013): 430–46. http://dx.doi.org/10.1111/rode.12041.
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Potapov, M., and N. Kotlyarov. "China in Global Capital Markets." World Economy and International Relations 65, no. 8 (2021): 81–89. http://dx.doi.org/10.20542/0131-2227-2021-65-8-81-89.
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The article is analyzing the positions of China in global capital markets, and the factors that determine them. It shows the trends and features of attracting foreign direct investment in China, exporting Chinese capital abroad, attracting portfolio investments to China. The investment aspects of the Chinese Belt and Road Initiative and the role of Hong Kong as an international financial center are also considered. The evolution of the currency market regulation in China and the dynamics of the Yuan exchange rate, as well as the internationalizing of the Chinese currency and its use in cross-border operations are also discussed. The authors believe that the prospects for strengthening China’s position in the global capital markets will be determined by a number of circumstances, including the dynamics of the world economy, the growth rate of the Chinese economy, and the consistent liberalization of conditions for cross-border capital movement in China. The maintaining of higher growth rates of the Chinese economy in the context of the global recession and the coronavirus pandemic, as well as the ongoing liberalization of the domestic capital markets, suggest that the Chinese economy will remain attractive for foreign investors. The export of Chinese direct investment abroad will be largely determined by the dynamics of the country’s foreign trade, national restrictions on the export of capital, the implementing the Belt and Road Initiative and the position of China’s leading economic partners, primarily the United States, towards Chinese investment. At the same time, increased geopolitical and country risks will affect the geographical structure of China’s investment abroad in the direction of enhancing cooperation with Asian countries and participants of the Belt and Road Project. In the context of aggravated relations with the United States, China will make efforts to reduce dependence on the US dollar in settlements. Further steps will also be taken to internationalize the Chinese national currency and to achieve an increase in the use of RMB in payments. The lifting of restrictions on cross-border portfolio investments in the PRC is predetermined by ensuring the domestic macroeconomic stability, strengthening the financial system, low inflation, affordable credit, a stable balance of payments, and sufficient foreign exchange reserves. China’s real entry into the world’s leaders, both in the global commodity and capital markets, requires the creation of its own technological base, the transition to a new energy-saving, environmental-friendly national economic structure based on knowledge and new technologies, balancing the development levels of the country’s regions, and increasing the average per capita income of people.
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Hong, Yu. "Repurposing Telecoms for Capital in China." Asian Survey 53, no. 2 (March 2013): 319–47. http://dx.doi.org/10.1525/as.2013.53.2.319.
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This paper provides a historical overview of China’s telecom development since market reform. Using Sichuan and Guangdong Provinces for comparison, the paper delineates two stages of telecom reform and explores how telecom networks foster domestic regional and social inequalities within the general process of development.
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Bajaj, Yukti, Smita Kashiramka, and Shveta Singh. "Capital structure dynamics: China and India (Chindia) perspective." European Business Review 32, no. 5 (April 13, 2020): 845–68. http://dx.doi.org/10.1108/ebr-09-2019-0203.
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Purpose The purpose of this study is to investigate the dynamics of capital structure for businesses in China and India. Whether and how they adjust their capital structures to witness the trade-off behaviour in the light of different macro-level factors. Design/methodology/approach Firms listed on the National Stock Exchange and Shanghai Stock Exchange over the period of 2009-2018 are used for the study. System generalized method of moments proposed by Blundell and Bond (1998) is deployed due to the use of dynamic short panel data. Findings Indian firms revert to their target leverage ratios at a higher rate as compared to Chinese firms (30 and 20 per cent, respectively). Further, the inflation rate, bond market and stock market development are significant factors impacting leverage in the case of India, whereas bond market development significantly impacts leverage in the case of China. These results are robust across various definitions of leverage and other firm and institutional control variables. Research limitations/implications This study has implications for various stakeholders. The study highlights that development in financial markets and economy impact the financing decisions and should be a cause for concern for the financial managers and policymakers. Thus, managers can use the findings of the study if they desire to maintain their target capital structures for better firm valuation and the policymakers can support them in achieving the same. Even, the investors can make informed investment decisions considering macro-level factors impacting firms’ financing choices. Originality/value It is believed to be the first piece of research effort to consider the novel paradigm of the macro-level factors impacting the target leverage to estimate the adjustment speed. Secondly, it is a pioneering study, which attempts to compare the trade-off behaviour of the top two emerging economies of the world.
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Abimanyu, Yoopi, Nur Sigit Warsidi, Sunu Kartiko, Ridiani Kurnia, and Tety Mahrani. "INTERNATIONAL LINKAGES TO THE INDONESIAN CAPITAL MARKET : COINTEGRATION TEST." Kajian Ekonomi dan Keuangan 16, no. 2 (November 9, 2015): 56–75. http://dx.doi.org/10.31685/kek.v16i2.43.
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This paper explores the international linkages of the Indonesian capital market using cointegration tests to examine the long-run equilibrium relationship between the stock markets of Indonesia with China, France, Germany, Hong Kong, Japan, Korea, Malaysia, Netherlands, Philippine, Singapore, Thailand, Taiwan, the United Kingdom, and the United States. The method used in this paper is visual inspection, followed by Johansen cointegration. Our results show that there exist cointegration between these stock market indices except between Indonesia and Philippine.
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Reshetnikova, Marina S. "China venture market overview." RUDN Journal of Economics 27, no. 4 (December 15, 2019): 753–60. http://dx.doi.org/10.22363/2313-2329-2019-27-4-753-760.
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Today the Chinese economy has rapidly begun the transition to a new stage of development. Its basis is high-tech production and national breakthrough technologies. This process happens due to the transformation of the government strategy in the direction of scaling up innovation through the inclusion of small and medium enterprises. China has been able to raise venture investments for its new development plan. However, since 2016, the rapid growth of the Chinese venture market has raised many concerns. The purpose of the study was to analyze and assess the current state of China's venture capital market. The research proved that, despite signs of overheating, it is still premature to talk about the formation of a “bubble” in the Chinese venture market. The article concludes with a discussion that China is transforming itself again and that the next wave of innovation and private entrepreneurship will be the wave of the future, with substantial global consequences.
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Siu, Yam Wing. "Impact of Expected Shortfall Approach on Capital Requirement Under Basel." Review of Pacific Basin Financial Markets and Policies 22, no. 04 (December 2019): 1950025. http://dx.doi.org/10.1142/s0219091519500255.
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This paper proposes a method that uses volatility index of US and six other markets of Pacific Basin, namely Hong Kong, Australia, India, Japan, Korea, and China, to provide value-at-risk (VaR) and expected shortfall (ES) forecasts. Empirical constants that are used to multiply the levels of volatility indexes for estimating VaR and ES of various significance levels for 1–22 days ahead, one by one, for seven market indexes have been statistically determined using daily data spanning from 4.75 to 16 years. It is because it would be inappropriate to simply scale up the one-day volatility by multiplying the square root of time (or the number of days) ahead to determine the risk over a longer horizon of [Formula: see text] days. Results show that the shift to ES approach generally increases the regulatory capital requirements from 2.09% of India market to 8.56% of Korea market except for the China market where ES approach yields an unexpected decrease of 3.21% of capital requirement.
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Xu, Li’ang. "The Impact of Multi-Level Capital Markets on The Business Transformation of Small and Medium-Sized Investment Banks Under the Beijing Stock Exchange Policy." Frontiers in Business, Economics and Management 4, no. 3 (August 8, 2022): 52–58. http://dx.doi.org/10.54097/fbem.v4i3.1134.
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The Beijing Stock Exchange (BSE) was incorporated on 3 September 2021 as the first corporate stock exchange in China, approved by the State Council and supervised by the China Securities Regulatory Commission. The BSE is designed to serve innovative small and medium-sized enterprises (SMEs), especially the "specialized and new" small giants, and to develop and interconnect with the Shanghai and Shenzhen Stock Exchanges and regional equity markets to form an institutional arrangement that suits the characteristics of SMEs and to explore the path of financial inclusion through capital market support for technological innovation of SMEs. Building a multi-level capital market so as to better serve the real economy is an important goal in the construction of China's capital market, and the establishment of the BSE is an important milestone. In the future, how small and medium-sized brokerage firms will make use of the policy opening brought by the BSE to strengthen the expansion of the corresponding business segments has become a key research direction. This paper will focus on the construction of China's multi-level capital market, compare it with the establishment of the US capital market, study the development path of China's capital market, and thus analyse the transformation path of Chinese small and medium-sized brokerage firms to seize the opportunities of the times.
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Keller, Wolfgang, Carol H. Shiue, and Xin Wang. "Capital Markets in China and Britain, 1770–1860: Evidence from Grain Prices." American Economic Journal: Applied Economics 13, no. 3 (July 1, 2021): 31–64. http://dx.doi.org/10.1257/app.20180299.
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Based on comprehensive grain price data, we employ a storage model to estimate consistent interest rates and compare capital market development between Britain and China. Interest rates for Britain were lower than China’s on average by about 3 percentage points from 1770 to 1860. For country pairs with bilateral distance less than 200 kilometers, the regional capital market integration in the Yangzi Delta in China comes close to the British average; but at larger distances, spatial interest rate correlations in Britain are twice those of the Delta and three or more times as high as elsewhere in China. Overall, our results suggest capital market development differences at an early date, so that capital market performance may be important for the Great Divergence that emerged between China and Western countries at this time. (JEL E43, E44, N23, N25, N53, N55, Q11)
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Dalal, Adel. "Venture Capital Market in China and Japan: Comparative Study." Asia and Africa today, no. 3 (2020): 34. http://dx.doi.org/10.31857/s032150750008729-3.
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Zhang, Ruijun, Xiaotong Yang, Nian Li, and Muhammad Asif Khan. "Herd Behavior in Venture Capital Market: Evidence from China." Mathematics 9, no. 13 (June 28, 2021): 1509. http://dx.doi.org/10.3390/math9131509.
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This paper aims to empirically analyze the herd behavior in the VC market in the context of China, including the existence, causes and consequences of herding among venture capitalists. For our empirical analysis, we first construct a herding measure and confirm the existence of herd behavior in the Chinese VC market. Then, we perform OLS/logit regression to examine the causes and consequences of herding among venture capitalists. Our results suggest that herd behavior in the venture capital market are driven by positive signals of essential information and a higher degree of information uncertainty. However, we find no evidence of the influence of feedback trading signals on herding among venture capitalists. Further analysis suggests that a better external information environment would help weaken the herding among venture capitalists, while their reputation concerns might amplify the herding effect. Finally, we examine the economic consequence of the herding and find that the herd behavior of venture capitalists would have an adverse effect on their exit performance. In addition to the enrichment and development of herding theory, our study also provides an essential theoretical frame and policy implications for the steady growth of the venture capital market in emerging economies.
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Li, Oliver Zhen, and Ning Cai. "Capital market research in taxation: Do it in China!" China Journal of Accounting Research 4, no. 1-2 (June 2011): 1–7. http://dx.doi.org/10.1016/j.cjar.2011.05.001.
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Jiang, Changjun, Sanggyun Na, and Fengting Jiang. "Influencing Efficiency of Tax Relief on the Capital Market: An Empirical Study of China Supply-Side Reform." Sustainability 11, no. 11 (May 28, 2019): 3012. http://dx.doi.org/10.3390/su11113012.
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One of the primary tasks of supply-side reform is to promote the reform of fiscal and taxation systems. It is an important part of institutional innovation to coordinate fiscal and other reforms. From the perspective of the supply side, this paper discusses whether the adjustment of fiscal and monetary policies will have a positive impact on China’s capital market and economic growth. In this paper, a windows-EBM model is constructed to test the panel data of major economies between 2008 and 2016, discuss their impact on the efficiency of the capital market, and to make a comparative analysis on the strategies to improve the vitality of China’s capital market. We find that the impact of China’s macro policies on capital market efficiency during 2008-2016 shows a huge potential space for adjusting fiscal and monetary policies, because these input factors are obviously interchangeable in China’s supply-side reform. This is in line with the expected direction of China’s supply-side reform. This paper reveals the positive effect of supply-side reform on capital activity. Tax cuts and monetary policy measures are needed to balance capital markets and to ensure their active and sustainable development.
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Ning, Yixi, Gubo Xu, and Ziwu Long. "What drives the venture capital investments in China?" Chinese Management Studies 13, no. 3 (August 5, 2019): 574–602. http://dx.doi.org/10.1108/cms-07-2017-0193.
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Purpose This study aims to examine the venture capital (VC) industry in China. It has demonstrated a history of high growth with significant variations over time. The authors have examined the trends and determinants of VC investments in China over a 20-year period from 1995 to 2014. They find that the aggregate amount of VC investments, the total number of venture deals and the average amount of venture investments per deal in China are all significantly impacted by macroeconomic conditions (i.e. GDP, export, money supply), technology innovations and financial market indicators (i.e. initial public offerings (IPOs), interest rate, price-to-earnings ratio, etc.). They also find that the 2007 China A-Share stock market crash and the subsequent global financial crisis have motivated VCists in China to adjust their investment strategies and risk levels by allocating more capital to later-stage investments and securing more deals with later-round financings. However, after the 2008 global financial crisis, the China’s venture industry has recovered faster compared to the US counterpart response. Design/methodology/approach The authors first perform trend analysis of VC investments at an aggregate level, by stages of development, and across industry from 1995 to 2014.To test H1 and H2, the authors use multiple regression models with lagged explanatory variables. To test H3, the authors use univariate tests to compare the measures of VC investments at an aggregate level, stage funds ratios, stage deals ratios and financing series ratios during both a five-year and seven-year time windows around the 2007 A-Share stock market crash and the subsequent financial crisis. Findings The development of the VC industry in China has demonstrated a history of high growth with significant variation over time. The authors find that the aggregate amount of VC investments, the total number of venture deals and the average amount of venture investments per deal in China are all significantly impacted by macroeconomic conditions (i.e. GDP, export, money supply), technology innovations and financial market indicators (i.e. IPOs, interest rate, price-to-earnings ratio, etc.). The authors also find that the 2007 China A-Share stock market crash and the subsequent global financial crisis have motivated VCists in China to adjust their investment strategies and risk by allocating more capital to later-stage investments and securing more deals with later-round financings. However, the China VC industry has recovered faster compared to the USA just after the 2008 global financial crisis. Research limitations/implications There are also limitations in the study. The VC data in China in the earlier 1990s might not be very reliable due to the quality of statistics. Therefore, the trend analysis and discussions mainly focus on the time after 2000. Also, the authors cannot find VC financing sequence data for the analysis. Second, there is no doubt that the policy impact from Chinese transforming economic system and government policies on its VC industry is substantial (Su and Wang, 2013). However, they cannot find an appropriate variable to be included in the empirical models to consider this effect. Further study on this area would provide meaningful information. Third, although the authors have done comparison study between the VC industry in China in this study and the VC industry in the US documented in Ning et al. (2015) and discussed some interesting findings, more in-depth research in this area will be very useful. Practical implications The findings have meaningful implications for VCists and start-up companies seeking equity financings in China. VCists should closely monitor macroeconomic and market conditions to make appropriate adjustments to their risk and investment strategies. Entrepreneurs seeking equity financings for their business could also monitor the identified macroeconomic and market indicators, which can help them with their timing and to negotiate a better equity financing deal. VC financing is more likely to succeed when key macroeconomic and market indicators become favorable. Originality/value This paper contributes to the literature by testing the supply and demand theory on the VC market proposed by Poterba (1989) and Gompers and Lerner (1998) from the macroeconomic perspective using 20 years’ VC data from China. The authors also examine how the 2007 A-Share stock market crash and the subsequent financial crisis affected VCists to adjust their risk levels and investment strategies. It provides useful information for international academia and policymakers to understand the quick rise of China VC industry. The authors also find that the macroeconomic drivers of VC industry are somewhat different under different economic systems.
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Cao, Dongmei, Dan Wang, Yujia Liao, and Qing Liu. "Does “lottery culture” affect household financial decisions? Evidence from China." PLOS ONE 17, no. 10 (October 14, 2022): e0275717. http://dx.doi.org/10.1371/journal.pone.0275717.
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In recent years, China’s “lottery culture” has developed vigorously. Moreover, the investment participation rate of Chinese families in the formal financial market is low, whereas that in the informal financial market is high. Is there a certain relationship between “lottery culture” and family financial decision-making? If so, what is the underlying mechanism? Based on the 2017 CHFS data and lottery sales data of provinces, this study explores the impact of “lottery culture” on household participation in the formal and informal financial markets and the diversity of household financial portfolios. Results show that “lottery culture” can impede household participation in the formal financial market and the diversity of household financial portfolios while promoting household participation in the informal financial market in China. Furthermore, we analyze two channels of “lottery culture” impacts on household financial decisions: (1) risk attitude and (2) human capital. Results illustrate that “lottery culture” can influence household financial decisions by increasing risk tolerance and reducing the human capital of households.
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Xu, Yun, Chuan Luo, Dongyu Chen, and Haichao Zheng. "What Influences the Market Outcome of Online P2P Lending Marketplace?" Journal of Global Information Management 23, no. 3 (July 2015): 23–40. http://dx.doi.org/10.4018/jgim.2015070102.
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Online Peer-to-Peer (P2P) lending marketplaces allow individuals to lend and borrow directly among each other without the mediation of a creditor bank institution. Prior literature has examined online P2P, but has largely been limited to the Western context. This paper thus explores how social capital and other factors influences online P2P lending in the U.S. and China. Based on the archival data of Prosper and PPDai, we compare market outcome of two online P2P lending marketplaces in the U.S. and China. The empirical results show that social capital is not equally important in different online communities. Social capital seems to be more influential for likelihood of getting funded in China than in the U.S. In contrast, social capital has influence on interest rate in the U.S. only. The authors' study thus extends current understanding about how social capital influences online communities to a global perspective.
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Lee, Joseph, and Yonghui Bao. "The Prospect of Regulatory Alignment for an Interconnected Capital Market between the United Kingdom and China: A Takeover Law Perspective." Chinese Journal of Comparative Law 8, no. 2 (July 25, 2020): 450–84. http://dx.doi.org/10.1093/cjcl/cxaa020.
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Abstract The United Kingdom (UK) and China have launched the London–Shanghai Stock Connect Scheme to achieve an integrated capital market. In this article, the takeover market is used as an example to examine the extent to which regulatory alignment between the UK and China is possible. The focus is on the role of financial intermediaries in the two markets and how they may influence the governance model of the transfer of corporate control by an open offer to the shareholders of the target company (a takeover bid). This article argues that without regulatory alignment such an integrated market is unlikely to be realized. There are differences between the UK and China in the economic model, ownership structure, and institutional arrangements, which have been reflected in the differences in interests served by takeover law in the two regimes. The design of the framework for takeover law in the UK empowers financial market participants, so as to attract capital to the London markets. In contrast, China’s takeover law is mainly aimed at facilitating industrial restructuring and creating globally competitive national companies (national champions). Hence, the UK’s shareholder-centred takeover model, with a strong focus on financial intermediaries and international investors, would not be easily replicated in China. However, the UK model could provide lessons for China to develop its takeover market—that is, further its market structure reform, develop independent financial intermediaries, and also attract an increasing number of investors.
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Bowles, Paul, and Gordon White. "The dilemmas of market socialism: Capital market reform in China ‐ part I: Bonds." Journal of Development Studies 28, no. 3 (April 1992): 363–85. http://dx.doi.org/10.1080/00220389208422238.
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Bowles, Paul, and Gordon White. "The dilemmas of market socialism: Capital market reform in China ‐ part II: Shares." Journal of Development Studies 28, no. 4 (July 1992): 575–94. http://dx.doi.org/10.1080/00220389208422247.
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Glinka, Katarzyna. "Adaptations within the financial market in China after global financial crisis." Oeconomia Copernicana 7, no. 4 (December 31, 2016): 565. http://dx.doi.org/10.12775/oec.2016.032.
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The purpose of this paper is to present the evolutionary changes occurring in the financial market of China, which were catalysed by the turmoil in the global financial market. These changes were the outcome of anti-crisis measures in macroeconomics policy undertaken at the beginning of the crisis; they were also a response to the quantitative easing policy in the USA and in the Euro Zone (i.e. an increased money supply also reaching the financial market in China). With the currently binding system of currency exchange (managed floating exchange rate), China’s policy towards capital movement, on the one hand, is an attempt to maximise the benefits of the inflow of foreign capital , whilst, on the other – to minimise the risk related to the sudden changes in the direction of the flow of capital. The consequence of such an approach is the strategy of gradual liberalisation of capital account, accompanied by the significant involvement of the state in the financial market. Some specific solutions applied to this matter, that are discussed in the paper, point to the specifics of such a strategy. The liberalisation of the national capital market was preceded by the liberalisation of the offshore market (in Hong Kong). Such a strategy allows China to take up measures directed at the internationalisation of their own currency without any significant opening of the capital account. This paper concentrates on a descriptive analysis of the above phenomenon.
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Zhang, Liang, Qi Yu, Zhenji Jin, and Jian Xu. "Do Intellectual Capital Elements Spur Firm Performance? Evidence from the Textile and Apparel Industry in China." Mathematical Problems in Engineering 2021 (May 27, 2021): 1–12. http://dx.doi.org/10.1155/2021/7332885.
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This paper examines how investment in intellectual capital (IC) elements by textile and apparel companies improves firm performance measured in terms of profitability, market value, and productivity. The modified value-added intellectual coefficient (MVAIC) model is applied to measure IC. Using a panel of 35 Chinese textile and apparel companies for a six-year period (2013–2018), the results show that physical and human capitals are the strong factors that contribute to firm performance. In addition, relational capital negatively influences profitability and market value, and structural capital and innovation capital have a negative impact on employee productivity. We also find that the MVAIC model performs better in measuring IC than the original value-added intellectual coefficient (VAIC) model. This paper can provide some insights for corporate managers to enhance firm performance and gain competitive advantage by proper utilization of IC in traditional industries.
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Liang, Jian, Liu Fang Li, and Han-Suck Song. "An explanation of capital structure of China's listed property firms." Property Management 32, no. 1 (February 11, 2014): 4–15. http://dx.doi.org/10.1108/pm-02-2013-0012.
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Purpose – The purpose of this paper is to investigate the determinants of the capital structure of listed property firms in China. Design/methodology/approach – The study is based on quantitative methods such as dynamic panel data models and a panel data set containing financial and accounting data for all listed property companies from 2006 to 2010 in China. Findings – The findings confirm that the state-own shares, the fixed asset values, the total size of assets and profitability have a positive and significant impact on the leverage ratio of listed property firms in China. The negative impact of the tax shields and the currency ratio, and significant impact of state-own shares on capital structure cannot be explained by existing capital structure theory but the unique property market regulation environment and market conditions in China. Research limitations/implications – The findings confirm the applicability of trade-off theory (except for the correlation between leverage and the tax shield) on property companies in China. They also highlight the importance of government policies and special market conditions in explaining the financing behaviour of property companies in transaction countries like China. Practical implications – Complimentary policies should be established along with property market restriction policies to offset their unequal negative effect on property companies with less state-owned shares. Furthermore, government should invest efforts to eliminate the discrimination credit treatment of banks against property companies with non-existent or few state-owned shares. Originality/value – The special financial behaviour of China's property firms and the unique financial and property market conditions highlight the necessity of researching the capital structure of listed property firms in China. However, most of the existing literature focuses on the company financial behaviour in developed countries, and very few studies have been done concerning property firms’ financing behaviour in emerging economies such as China, and this research prospects to fill this blank.
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Horwitz, F., M. Ferguson, I. Rivett, and A. Lee. "An Afro-Asian nexus: South African multinational firm experiences in Chinese labour markets – key focus areas." South African Journal of Business Management 36, no. 3 (September 30, 2005): 29–40. http://dx.doi.org/10.4102/sajbm.v36i3.633.
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This exploratory study examines perspectives of multinational corporations (MNCs) from South Africa (SA) in respect of the variables considered important in product and labour markets in China. These include how MNCs first interpret and understand cultural, human capital, regulatory factors and employment practices, before considering how they might adapt to or seek to influence them. A survey of thirteen SA firms operating or trading in these markets and interviews with South Africans who had undertaken exploratory assignments in China, were done. Key factors were identified and evaluated based on relevant literature and research. The following six focus areas were found to be important for business effectiveness in this market: understanding its market complexity, importance of joint venture partners, guanxi relationship networks, human capital, language and culture, and regulatory environment.
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Xu, Lei, Shih-Cheng Lee, and Yishu Fu. "Impacts of capital regulation and market discipline on capital ratio selection: evidence from China." International Journal of Managerial Finance 11, no. 3 (June 1, 2015): 270–84. http://dx.doi.org/10.1108/ijmf-02-2014-0021.
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Purpose – The purpose of this paper is to examine the impacts of capital regulation and market discipline when China imposed most of the Basel I requirements between 2004 and 2010. Design/methodology/approach – Following Barrios and Blanco (2003) and Rime (2001), the authors apply disequilibrium and simultaneous measurements to identify the financial safety net underlying capital movements as well as the changes in credit risk levels in China’s banking sector. Findings – The authors discover that capital regulation outweighs market discipline by an average probability of 0.65-0.35 in the contribution to bank capital movements when banks significantly improve their capital buffers. In addition, the banking sector lowered its risk levels in the sample period. Research limitations/implications – The findings suggest that the largest bank-based economy has consolidated its financial system for future expansion. Originality/value – China’s banking sector requires closer examination of capital and risks provided by its emerging significance in the financial world. Thus, this study contributes to current literature.
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Li, Xiaorong, and Kami Rwegasira. "Diversification and the Internal Capital Market Building Motive in China." Journal of Transnational Management 15, no. 2 (May 28, 2010): 103–16. http://dx.doi.org/10.1080/15475778.2010.481245.
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Sun, Zhe. "Study on the Development Direction of Capital Market in China." Economics 7, no. 1 (2018): 23. http://dx.doi.org/10.11648/j.eco.20180701.14.
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Liu, Yuting, Qingjun Meng, and Yong Ma. "The Enlightenment to China from UK’s Pension Entering Capital Market." American Journal of Industrial and Business Management 06, no. 08 (2016): 885–89. http://dx.doi.org/10.4236/ajibm.2016.68084.
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Wu, Jing. "Did the Inclusion of China’s A-Shares in the MSCI Index Improve the Information Content of Listed Firms? Analysis Based on Stock Price Synchronisation and Environmental Social Governance." Wireless Communications and Mobile Computing 2022 (August 23, 2022): 1–9. http://dx.doi.org/10.1155/2022/7623580.
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Chinese A-shares were officially included in the Morgan Stanley Capital International (MSCI) Emerging Markets Index from June 2018. The inclusion of the A-share market into the MSCI Index is one of the most influential events in the opening up of the capital market of China. However, China’s A-share market has an imperfect system compared with that of developed countries. Stock price synchronisation is more serious in China than in developed countries, and Environmental Social Governance (ESG) disclosures are imperfect. Excessive stock price synchronicity can affect the information content of stock prices, and imperfect ESG disclosures are not conducive to the investment decisions of investors and thus not conducive to the price mechanism for adjusting the market. From the perspective of stock price synchronisation and ESG disclosure, this study discusses the impact of the exogenous event of the inclusion of A-shares in the MSCI Index on China’s capital market. Based on data of listed firms from 2011 to 2019, this study determines whether MSCI target stocks have high stock price information content and explores the ESG disclosure level based on a difference-in-differences (DID) model. In addition, this study conducts a parallel trend hypothesis test and propensity score matching (PSM) to test the robustness of the results. Empirical results show that the inclusion of A-shares in the MSCI Index increased the stock price information content and reduced the stock price synchronisation of MSCI target stocks. At the same time, this study tests the quality of the ESG information disclosure of A-shares after their inclusion in the MSCI Index and finds that the level of disclosure of the underlying stocks improved. This finding indicates that the inclusion of A-shares in the MSCI Index plays a role in improving the quality of ESG disclosure through information channels. The research conclusions have important implications for the active promotion of the expansion of the MSCI Index and further opening up of the capital market of China. In addition, the conclusions can provide a reference for subsequent MCSI decision-making and insights into the capital markets of other emerging-market countries.
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OPREAN, CAMELIA, and CRISTINA TĂNĂSESCU. "FRACTALITY EVIDENCE AND LONG-RANGE DEPENDENCE ON CAPITAL MARKETS: A HURST EXPONENT EVALUATION." Fractals 22, no. 04 (November 12, 2014): 1450010. http://dx.doi.org/10.1142/s0218348x14500108.
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Since the existence of market memory could implicate the rejection of the efficient market hypothesis, the aim of this paper is to find any evidence that selected emergent capital markets (eight European and BRIC markets, namely Hungary, Romania, Estonia, Czech Republic, Brazil, Russia, India and China) evince long-range dependence or the random walk hypothesis. In this paper, the Hurst exponent as calculated by R/S fractal analysis and Detrended Fluctuation Analysis is our measure of long-range dependence in the series. The results reinforce our previous findings and suggest that if stock returns present long-range dependence, the random walk hypothesis is not valid anymore and neither is the market efficiency hypothesis.
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Maiti, Moinak, Darko Vukovic, Yaroslav Vyklyuk, and Zoran Grubisic. "BRICS Capital Markets Co-Movement Analysis and Forecasting." Risks 10, no. 5 (April 19, 2022): 88. http://dx.doi.org/10.3390/risks10050088.
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The present study analyses BRICS (Brazil, Russia, India, China, South Africa) capital markets in both time and frequency domain using wavelets. We used artificial neural network techniques to forecast the co-movement among BRICS capital markets. Wavelet coherence and clustering estimates uncover the interesting dynamics among the BRICS capital markets co-movement. A wavelet coherence diagram shows a clear contagion effect among BRICS nations, and it favors short period investments over longer period investments. Overall study estimates indicate that co-movement among BRICS nations significantly differs statistically at different levels. Except for China during the great financial crisis period, significant levels of co-movement were observed between other BRICS nations and that lasted for a longer period of time. A wavelet clustering diagram demonstrates that investors would not get any substantial benefits of diversification by investing only in the ‘Russia and China’ or ‘India and South Africa’ capital markets. Lastly, the study attempts to forecast the BRICS capital market co-movement using two different types of neural networks. Further, RMSE (Root Mean Square Error) values confirm the correctness of the forecasting model. The present study answers the key question, “What kind of integration and globalization framework do we need for sustainable development?”.
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Zhang, Lin. "Exit of Chinese Domestic Venture Capital: Legal Impediments and Reform Measures." Business Law Review 38, Issue 3 (May 1, 2017): 109–15. http://dx.doi.org/10.54648/bula2017016.
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The American experience tells us that a fair and efficient stock market is vital for the exit of venture capital from their successful portfolio companies. Unfortunately, the current multi-tier stock market in China, including the Main Boards, the Small and Medium-sized Enterprise Board (SME Board) and the Growth Enterprise Markets (GEM), cannot offer smooth exit channels for Chinese domestic venture capital either because of their demanding listing rules or because of their problematic listing approval systems. Confronted with this unsatisfactory situation, legal reforms must be carried out as quickly as possible.
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Chen, Chao, Edward Lee, Gerald J. Lobo, and Jessie Zhu. "Who Benefits From IFRS Convergence in China?" Journal of Accounting, Auditing & Finance 34, no. 1 (February 15, 2017): 99–124. http://dx.doi.org/10.1177/0148558x16688115.
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We study the ex ante stock market reactions to events leading up to China’s convergence to International Financial Reporting Standards (IFRS). The literature consistently shows that the benefits of mandatory IFRS convergence are concentrated in countries with stronger legal enforcement and investor protection. Given that these institutional characteristics are weaker in China relative to more developed Western economies, whether mandating IFRS will benefit the Chinese capital market is an interesting and important, but unanswered question. We find that the Chinese stock market reacts favorably to events leading up to IFRS convergence, and this effect is more pronounced among firms with greater dependence on external capital. This result suggests the market anticipates that such firms will benefit more from IFRS convergence, possibly because of improved financial reporting quality and access to external financing. Additional tests confirm that the value relevance of accounting numbers for these firms is higher following IFRS convergence.
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Wu, Jing, Chuan Luo, and Ling Liu. "A Social Network Analysis on Venture Capital Alliance’s Exit from an Emerging Market." Complexity 2020 (June 28, 2020): 1–10. http://dx.doi.org/10.1155/2020/4650160.
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This study investigated the impacts of network structure on a venture capital (VC) alliance’s successful exit from an emerging market by empirically analyzing joint VC data in China. We find that, compared to a mature capital market, the mechanism not only has a certain commonality but also shows the emerging market’s particularities. From the commonality perspective, the mechanism has a positive effect on successful exit by obtaining heterogeneity information. These particularities are manifested in the following three aspects. First, the mechanism is not conducive to deepening the enterprise value chain to establish credibility by obtaining short-term cash during an initial public offering with the enhancement of the VC alliance’s intervention ability for enterprise development. In addition, a VC alliance’s independent judgment is bound by the VC market. Furthermore, the problem of over-trust in investees reduces the likelihood of a VC alliance’s successful exit. Therefore, we should pay more attention to the particularity of emerging markets such as China to improve the relevant management mechanism.
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McClean, Bill. "IC MARKET UPDATE AND CHINA IMPACT ANALYSIS." Additional Conferences (Device Packaging, HiTEC, HiTEN, and CICMT) 2019, DPC (January 1, 2019): 000780–807. http://dx.doi.org/10.4071/2380-4491-2019-dpc-gbc5_icinsights.
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A high level of uncertainty looms over the global economy and sales of smartphones are beginning to saturate. However, the Internet of Things, driver assisted autos, and AI hold promise for the future. In order to make sense out of the current turmoil, a top-down analysis of the IC market will be given and include trends in worldwide GDP growth, electronic system sales, and semiconductor industry capital spending. A critical look at China's ambitions to become a bigger player in the IC industry will also be presented.
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Sekakela, Kedibonye. "The impact of trading with China on Botswana’s economy." Journal of Chinese Economic and Foreign Trade Studies 9, no. 1 (February 1, 2016): 2–23. http://dx.doi.org/10.1108/jcefts-09-2014-0022.
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Purpose – The purpose of this paper is to examine the impact of trading with China on Botswana’s domestic and third markets. The paper also assesses the structure and magnitude of Botswana–China bilateral trade. Design/methodology/approach – The paper used descriptive statistics such as graphic analysis to describe and summarize the basic features of the data. To reach conclusions that extend beyond the immediate data alone, the study applied Chenery Decomposition Approach and also applied the extension of Constant Market Share (CMS) analysis. Findings – Botswana mainly exports primary products to China and imports intermediate and capital goods, which are mainly used as inputs in the development of infrastructure in the country. Increased imports from China into Botswana’s domestic market has mainly replaced imports from other countries, and China’s textile, clothing and footwear (TCF) exports gained market share from Botswana’s TCF exports in the third markets, i.e. South Africa. Unlike Lesotho, the loss of market share by Botswana’s TCF exports in the South African market increased over the period under study. The Botswana Government needs to consider ways of enhancing Botswana’s TCF export competitiveness and learn lessons from China in relation to enhancing productivity in the TCF and other exporting industries. Research limitations/implications – Because of lack of data, this paper failed to estimate the impact of import penetration in the manufacturing subsectors and analyze the rapidly growing Botswana–China bilateral trade in services. There has been no estimate of the impact of intermediate and capital goods on production costs of Botswana’s productive sectors. Lastly, because of lack of data, there have been no estimates of Botswana’s consumer surplus generated from consuming relatively low-priced goods from China. Originality/value – This is the first study to carry out an empirical analysis of the Botswana–China trade relation. The study will be of value to academia and to policymakers who are interested in studying the China–Africa relation.