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Stimulus Loan Wanes and Shadow Banking Waxes Zhuo Chen, Zhiguo He, Chun Liu AUGUST 2019
WORKING PAPER · NO. 2019-29 The Financing of Local Government in China: Stimulus Loan Wanes and Shadow Banking Waxes Zhuo Chen, Zhiguo He, Chun Liu AUGUST 2019 A Program of 5757 S. University Ave. Chicago, IL 60637 Main: 773.702.5599 bfi.uchicago.edu The Financing of Local Government in China: Stimulus Loan Wanes and Shadow Banking Waxes? forthcoming in Journal of Financial Economics Zhuo Chena, Zhiguo Heb,∗, Chun Liuc aPBC School of Finance, Tsinghua University, No. 43, Chengfu Road, Haidian District, Beijing 100083, P.R. China bBooth School of Business, University of Chicago, and NBER, 5807 S Woodlawn Ave, Chicago, IL 60637 cSchool of Economics and Management, Tsinghua University, Beijing 100084, P.R. China Abstract The upsurge of shadow banking is typically driven by rising financing demand from certain real sectors. In China, the four-trillion-yuan stimulus package in 2009 was behind the rapid growth of shadow banking after 2012, expediting the development of Chinese corporate bond markets in the post-stimulus period. Chinese local governments financed the stimulus through bank loans in 2009, and then resorted to non-bank debt financing after 2012 when faced with rollover pressure from bank debt coming due. Cross-sectionally, using a political-economy-based instrument, we show that provinces with greater bank loan growth in 2009 experienced more municipal corporate bond issuance during 2012–2015, together with more shadow banking activities including Trust loans and wealth management products. China’s post-stimulus experience exhibits -
Taking Bo Xilai's Bribery Crime As an Example
ISSN 1923-0176 [Print] Studies in Sociology of Science ISSN 1923-0184 [Online] Vol. 5, No. 3, 2014, pp. 118-123 www.cscanada.net DOI: 10.3968/5302 www.cscanada.org A Cognitive Analysis of Crime: Taking Bo Xilai’s Bribery Crime as an Example ZHANG Chenquan[a],* [a]Guangdong University of Education, Guangzhou, China. Bo denied the bribery charge in court, arguing that he had *Corresponding author. no knowledge of what his wife and son had done, there Received 15 March 2014; accepted 18 July 2014 was no special relationship between him and the bribers 2 Published online 27 August 2014 and he had never used his power to help the bribers. The following is a cognitive analysis of Bo’s bribery Abstract crime charged in the judgment of the first instance by the In the judgment of the first instance for Bo Xilai’s case, Intermediate People’s Court of Jinan. the space-builder “The court herein believes…”activates a conceptual integration network of criminal judgment, 1. CONCEPTUAL INTEGRATION which involves four mental spaces: two input spaces, the generic space and the blended space. Its cognitive NETWORK OF CRIMINAL JUDGMENT outcome is the blended space, in which the core content ACTIVATED BY “THE COURT HEREIN is: Bo Xilai is convicted of bribery and sentenced to life imprisonment as well as life deprivation of political rights BELIEVES…” and confiscation of all personal property. The cognitive The court herein believes that the defenfant’s act has constituted analysis of this conceptual integration network justifies the crime of bribery with the justification of the facts that Bo that the defendant`s act constitutes a bribery crime. -
Public Finance for Renewable Energy in China: Building on International Experience
Public Finance for Renewable Energy in China: Building on international experience Richard Bridle Lucy Kitson August 2014 REPORT IISD iisd.org © 2014 The International Institute for Sustainable Development Published by the International Institute for Sustainable Development. International Institute for Sustainable Development The International Institute for Sustainable Development (IISD) contributes to sustainable development by advancing policy recommendations on international trade and investment, economic policy, climate change and energy, and management of natural and social capital, as well as the enabling role of communication technologies in these areas. We report on international negotiations and disseminate knowledge gained through collaborative projects, resulting in more rigorous research, capacity building in developing countries, better networks spanning the North and the South, and better global connections among researchers, practitioners, citizens and policy-makers. IISD’s vision is better living for all—sustainably; its mission is to champion innovation, enabling societies to live sustainably. IISD is registered as a charitable organization in Canada and has 501(c)(3) status in the United States. IISD receives core operating support from the Government of Canada, provided through the International Development Research Centre (IDRC), from the Danish Ministry of Foreign Affairs and from the Province of Manitoba. The Institute receives project funding from numerous governments inside and outside Canada, United Nations agencies, -
Limits to Autocracy: an Analysis of China's Renationalization
Limits to Autocracy: An Analysis of China’s Renationalization Zhangkai Huang Lixing Li School of Economics and Management National School of Development Tsinghua University Peking University [email protected] [email protected] Guangrong Ma Jun “QJ” Qian School of Finance Shanghai Advanced Institute of Finance Renmin University of China Shanghai Jiaotong University [email protected] [email protected] This version: June 23, 2017 Abstract We document large-scale reversal of privatization in China—local governments taking back shares in a quarter of previously privatized firms. Politicians who are not affiliated with any of the dominant political factions are more likely to waver under pressure and adopt renationalization. The failure to adhere to the privatization scheme reduces productivity and raises labor redundancy and firm leverage. The policy reversal casts doubt on the notion that autocracies have advantages in policy implementation: politicians without factional affiliation are disadvantaged in the promotion process and are more sensitive to unemployment pressure. JEL Classifications: G32, H11, P31, L22 Keywords: Renationalization, privatization, political faction, unemployment, productivity 1. Introduction Are autocracies superior in implementing economic policies than democracies? After all, since autocrats get their power through coercion, not election, it seems they may be good at pushing economically sound policies that might be politically costly under democracy. For example, Gary Becker states that: “Visionary leaders can accomplish more in autocratic than democratic governments because they need not heed legislative, judicial, or media constraints in promoting their agenda…Visionaries in democracies can accomplish much sometimes… However, their accomplishments are usually constrained by due process that includes legislative, judicial, and interest group constraints.” (Becker 2010). -
Pharmaceutical Policy in China
Pharmaceutical policy in China Challenges and opportunities for reform Elias Mossialos, Yanfeng Ge, Jia Hu and Liejun Wang Pharmaceutical policy in China: challenges and opportunities for reform Pharmaceutical policy in China: challenges and opportunities for reform Elias Mossialos, Yanfeng Ge, Jia Hu and Liejun Wang London School of Economics and Political Science and Development Research Center of the State Council of China Keywords DRUG AND NARCOTIC CONTROL PHARMACEUTICAL PREPARATIONS DRUG COSTS DRUG INDUSTRY HEALTH CARE REFORM HEALTH POLICY CHINA © World Health Organization 2016 (acting as the host organization for, and secretariat of, the European Observatory on Health Systems and Policies) All rights reserved. The European Observatory on Health Systems and Policies welcomes requests for permission to reproduce or translate its publications, in part or in full. Address requests about publications to: Publications, WHO Regional Office for Europe, UN City, Marmorvej 51, DK-2100 Copenhagen Ø, Denmark. Alternatively, complete an online request form for documentation, health information, or for permission to quote or translate, on the Regional Office web site (www.euro.who.int/pubrequest). The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the European Observatory on Health Systems and Policies concerning the legal status of any country, territory, city or area or of its authorities, or concern- ing the delimitation of its frontiers or boundaries. Dotted lines on maps represent approximate border lines for which there may not yet be full agreement. The mention of specific companies or of certain manufacturers’ products does not imply that they are endorsed or recommended by the European Observatory on Health Systems and Policies in preference to others of a similar nature that are not mentioned. -
The Financing of Local Government in China: Stimulus Loan Wanes and Shadow Banking Waxes? Forthcoming in Journal of Financial Economics
The Financing of Local Government in China: Stimulus Loan Wanes and Shadow Banking Waxes? forthcoming in Journal of Financial Economics Zhuo Chena, Zhiguo Heb,∗, Chun Liuc aPBC School of Finance, Tsinghua University, No. 43, Chengfu Road, Haidian District, Beijing 100083, P.R. China bBooth School of Business, University of Chicago, and NBER, 5807 S Woodlawn Ave, Chicago, IL 60637 cSchool of Economics and Management, Tsinghua University, Beijing 100084, P.R. China Abstract The upsurge of shadow banking is typically driven by rising financing demand from certain real sectors. In China, the four-trillion-yuan stimulus package in 2009 was behind the rapid growth of shadow banking after 2012, expediting the development of Chinese corporate bond markets in the post-stimulus period. Chinese local governments financed the stimulus through bank loans in 2009, and then resorted to non-bank debt financing after 2012 when faced with rollover pressure from bank debt coming due. Cross-sectionally, using a political-economy-based instrument, we show that provinces with greater bank loan growth in 2009 experienced more municipal corporate bond issuance during 2012–2015, together with more shadow banking activities including Trust loans and wealth management products. China’s post-stimulus experience exhibits similarities to financial market development during the U.S. National Banking Era. JEL: E61, G21, H72, O17 Keywords: Local Government Financing Vehicles, Municipal Corporate Bonds, Political Cycle, Shadow ?We thank Chong-En Bai, Jennifer Carpenter, Will -
Minimum Wage Competition Between Local Governments in China
DISCUSSION PAPER SERIES IZA DP No. 11893 Minimum Wage Competition between Local Governments in China Yanan Li Ravi Kanbur Carl Lin OCTOBER 2018 DISCUSSION PAPER SERIES IZA DP No. 11893 Minimum Wage Competition between Local Governments in China Yanan Li Beijing Normal University Ravi Kanbur Cornell University and IZA Carl Lin Bucknell University, China Institute for Income Distribution and IZA OCTOBER 2018 Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world’s largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. IZA – Institute of Labor Economics Schaumburg-Lippe-Straße 5–9 Phone: +49-228-3894-0 53113 Bonn, Germany Email: [email protected] www.iza.org IZA DP No. 11893 OCTOBER 2018 ABSTRACT Minimum Wage Competition between Local Governments in China The theory of fiscal and regulatory competition between jurisdictions is more advanced than its empirical testing. -
Bo Xilai and Reform: What Will Be the Impact of His Removal?
Bo Xilai and Reform: What Will Be the Impact of His Removal? Joseph Fewsmith The unexpected flight of Chongqing’s Public Security head to the U.S. consulate in Chengdu in February started an unexpected sequence of events that led to the removal of Bo Xilai, the princeling head of the Chongqing party committee, and the subsequent decision to investigate him. Depending on the outcome of that party investigation, Bo could then be subject to civil proceedings (as is almost always the case). These events have disrupted what appeared to be the smooth transition planned for the 18th Party Congress later this fall. There has been much commentary on these events, and different observers look at the significance and impact of the Bo Xilai case on Chinese politics differently. Looking at Bo’s unique place in the Chinese political system and at the actions taken and commentary issued by the government in Beijing, this article concludes that Beijing is taking steps to narrow the case against Bo as much as possible, presenting it as a case of violating party discipline and the law. Although this makes sense in the short run, there may be ramifications of the case that will reverberate for a long time. The run-up to the 18th Party Congress scheduled to be held this fall has proven to be more interesting than anyone imagined. The escape of Wang Lijun, Chongqing’s vice mayor and head of public security, to the U.S. consulate in Chengdu and his subsequent arrest, followed by stories that Gu Kailai, wife of the Chongqing party secretary, was suspected of the murder of English entrepreneur Neil Heywood, and finally the removal and investigation of Bo Xilai himself have generated vast quantities of newspaper articles, lurid stories, and speculation. -
The Chinese People's Liberation Army at 75
THE LESSONS OF HISTORY: THE CHINESE PEOPLE’S LIBERATION ARMY AT 75 Edited by Laurie Burkitt Andrew Scobell Larry M. Wortzel July 2003 ***** The views expressed in this report are those of the authors and do not necessarily reflect the official policy or position of the Department of the Army, the Department of Defense, or the U.S. Government. This report is cleared for public release; distribution is unlimited. ***** Comments pertaining to this report are invited and should be forwarded to: Director, Strategic Studies Institute, U.S. Army War College, 122 Forbes Ave., Carlisle, PA 17013-5244. Copies of this report may be obtained from the Publications Office by calling (717) 245-4133, FAX (717) 245-3820, or via the Internet at [email protected] ***** Most 1993, 1994, and all later Strategic Studies Institute (SSI) monographs are available on the SSI Homepage for electronic dissemination. SSI’s Homepage address is: http:// www.carlisle.army.mil/ssi/index.html ***** The Strategic Studies Institute publishes a monthly e-mail news- letter to update the national security community on the research of our analysts, recent and forthcoming publications, and upcoming conferences sponsored by the Institute. Each newsletter also pro- vides a strategic commentary by one of our research analysts. If you are interested in receiving this newsletter, please let us know by e-mail at [email protected] or by calling (717) 245-3133. ISBN 1-58487-126-1 ii CONTENTS Foreword Ambassador James R. Lilley . v Part I: Overview. 1 1. Introduction: The Lesson Learned by China’s Soldiers Laurie Burkitt, Andrew Scobell, and Larry M. -
Comparative Policy Study for Green Buildings in U.S. and China
LBNL-6609E ERNEST ORLANDO LAWRENCE BERKELEY NATIONAL LABORATORY Comparative Policy Study for Green Buildings in U.S. and China Nina Khanna, John Romankiewicz, Wei Feng, and Nan Zhou China Energy Group Environmental Energy Technologies Division Lawrence Berkeley National Laboratory Qing Ye Shenzhen Institute of Building Research April 2014 This work was supported by the Shenzhen Institute of Building Research through the U.S. Department of Energy under Contract No. DE-AC02-05CH11231. Disclaimer This document was prepared as an account of work sponsored by the United States Government. While this document is believed to contain correct information, neither the United States Government nor any agency thereof, nor The Regents of the University of California, nor any of their employees, makes any warranty, express or implied, or assumes any legal responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by its trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof, or The Regents of the University of California. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof, or The Regents of the University of California. Ernest Orlando Lawrence Berkeley National Laboratory is an equal opportunity employer. Comparative Policy Study of Green Buildings in U.S. and China Nina Khanna, John Romankiewicz, Wei Feng, and Nan Zhou China Energy Group Environmental Energy Technologies Division Lawrence Berkeley National Laboratory Qing Ye Shenzhen Institute of Building Research Executive Summary Buildings are the largest energy end-use sector in the U.S. -
China's Rulers: the Fifth Generation
CHINA’S RULERS: THE FIFTH GENERATION TAKES POWER (2012–13) Michael Dillon This project is funded by A project implemented by The European Union Steinbeis GmbH & Co. KG für Technologietransfer © Europe China Research and Advice Network, 2012 This publication may be reproduced for personal and educational use only. Commercial copying, hiring or lending of this publication is strictly prohibited. Europe China Research and Advice Network 10 St James’s Square London SW1Y 4LE +44 (0) 20 7314 3659 [email protected] www.euecran.eu Contents Foreword ........................................................................................................ 4 ExecutIve Summary ........................................................................................ 6 Key PRC PolItIcal BodIes .................................................................................. 7 Timetable for Leadership Changes .................................................................. 8 Introduction ................................................................................................... 9 1 Change and ContInuity ............................................................................... 11 2 Senior PolItIcal Appointments .................................................................... 14 3 PolItIcal GeneratIons In China .................................................................... 16 4 CCP FactIons and the SuccessIon Process ................................................... 17 5 Key Issues ................................................................................................. -
China's New Top Leaders: a Preview of the CCP's Eighteenth National
Griffith Asia Institute Regional Outlook China’s New Top Leaders: A Preview of the CCP’s Eighteenth National Congress Shanding Zhou About the Griffith Asia Institute The Griffith Asia Institute produces innovative, interdisciplinary research on key developments in the politics, economics, societies and cultures of Asia and the South Pacific. By promoting knowledge of Australia’s changing region and its importance to our future, the Griffith Asia Institute seeks to inform and foster academic scholarship, public awareness and considered and responsive policy making. The Institute’s work builds on a 42 year Griffith University tradition of providing cutting- edge research on issues of contemporary significance in the region. Griffith was the first University in the country to offer Asian Studies to undergraduate students and remains a pioneer in this field. This strong history means that today’s Institute can draw on the expertise of some 50 Asia–Pacific focused academics from many disciplines across the university. The Griffith Asia Institute’s ‘Regional Outlook’ papers publish the institute’s cutting edge, policy-relevant research on Australia and its regional environment. They are intended as working papers only. The texts of published papers and the titles of upcoming publications can be found on the Institute’s website: www.griffith.edu.au/asiainstitute ‘China’s New Top Leaders: A Preview of the CCP’s Eighteenth National Congress’, Regional Outlook Paper No. 43, 2012. About the Author Shanding Zhou Shanding Zhou is a PhD candidate in the Department of International Business and Asian Studies at Griffith University, and he is associated with the Griffith Asia Institute.