Suchergebnisse

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.

After the 2008 financial crisis, the International Monetary Fund realises that reforms are needed to reduce the reliance on the US dollar as the only international reserve currency. It began to nurture super-sovereign reserve money where SDR (Special Drawing Rights) is the most favourable candidate. Joining SDR will push forward China's exchange rate reform to meet the standard of a real international reserve currency, which requires more skilful domestic and international policy coordination.

Several factors contributed to China's market crash in 2015. One was the use of leverage trading. This includes both official margin trading as well as trading through various unofficial channels. The other was the introduction of the stock index future. Commercial banks were heavily involved in stock trading in this crash, mainly through providing leverages. The latest stock market fluctuations have taught the Chinese government several valuable lessons.

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.

China's shadow banking is intimately related to commercial banks, local government debt and real estate development. The major expansion in local government debt is the result of a boom in shadow banking and worsened by real estate developers. The growth of the Chinese economy largely lies on the continuous rise of land prices. The imposition of proper regulation is for shadow banking to serve the function of supplementing the current financial sector.

The Chinese government reiterated its commitment to proactive fiscal and prudent monetary policies. Since 2014, the central bank has taken measures to loosen money supply as the economy faces growing downward pressure. The leadership strives to maintain modest growth while facilitating economic restructuring. For the central bank, besides maintaining an accommodating monetary environment, it is asked to achieve better credit allocation among sectors. Numerous new innovative policy tools have been experimented.

China has taken a series of proactive measures to prevent and control air pollution. The Air Pollution Prevention and Control Action Plan (2013) includes main policy initiatives to improve national and regional air quality. Fiscal reforms are needed to fund clean-air technology and incentivise firms and households to reduce pollution and economise energy use. The War on Smog requires high-level coordination of governments at different levels and various local jurisdictions.

"This book examines the recent development and prospect of the Chinese economy as the country adapts to changing domestic and external settings. After more than three decades of near double-digit annual expansion, the country's growth decelerated considerably to enter a new era of the so-called New Normal. At the macro level, considerable amount of overhaul is required to improve governance and enhance regulatory effectiveness. These include monetary policy adjustment, financial sector development and taxation reforms. As the Chinese government at both the central and local levels plays an important role in promoting growth, issues such as the role of local government and the reform of state-owned enterprises are examined in this book. Topics such as the development of private consumption and industrial upgrading are also assessed. The book discusses several matters considered important to China's social and economic cohesion including the management of agricultural product reserves, the development of a functioning social security system and regional development. To help project a long-term view of China's economic strength, the book also examines such factors as development in population and the labour market. This book provides a comprehensive analysis of China's economy and identifies the recent developments that matter to China's economic future."--Publisher's website

There are two monetary puzzles in post-2008 China—the money multiplier had risen considerably in magnitude and the rapidly expanding money supply, M2, has not led to a surge in consumer price index (CPI). To untangle the puzzles, the authors relaxed some of the assumptions in the conventional quantity theory of money (QTM) and introduced endogeneity into the money multiplier, taking into account the rapid expansion of shadow banking. This unveils a mechanism that links monetary authority and credit allocation among sectors. An important policy implication is that controlling the relative size of shadow banking can help improve the effectiveness of China's monetary policies. (CIJ/GIGA)

Supply-side structural reform has been a catchphrase in China since 2015 in official media. While there is a lack of details, the government seems to have placed hope on formulating policies to address both short-term problems, such as production overcapacity, and long-term issues like cultivating growth engines for sustainable development. Although the importance of structural reforms has been stressed, formulating coherent and effective policies remains tricky. The outcome remains to be seen.

AbstractImproving the incentive mechanism and institutional framework of green finance policy is important to promote the synchronization of environmental management and enterprise development. Based on China's green finance reform and innovation pilot (GFRIP) policy in 2017, this study constructs a quasi‐natural experiment with a sample of A‐share listed companies and draws the following conclusions. (1) The effectiveness of GFRIP policy in significantly promoting enterprises' ESG performance in pilot areas, robustness tests such as propensity score matching and placebo tests reconfirm conclusions. (2) The GFRIP policy can effectively improve enterprise ESG performance by easing financing constraints, promoting green investment, and improving managers' green cognition. (3) Both external environmental law enforcement and internal manager environmental awareness can enhance the promotion effect of the GFRIP policy on ESG performance. (4) Heterogeneity analysis shows that the ESG performance of state‐owned enterprises, large enterprises, and high‐polluting enterprises is more affected by pilot policy. The results of the study provide a valuable perspective on how the government can promote green finance policies and implications for enterprises' sustainable development.