The development of offshore RMB financial market is the inevitable course to promote the internationalization of the RMB. We empirically investigate the regional influence of offshore RMB by discussing the spillover effects and its time-varying characteristics between offshore RMB and other currencies of neighboring countries and regions. The results indicate that the offshore RMB already has regional influence, which is superior to the onshore RMB’s influence. But the influence is limited for some Asian currencies have strong spillover effect to the offshore RMB, which means it can’t be called as a regional anchor currency. Relevant results provide the bases for developing the offshore RMB market, improving the formation mechanism of RMB, and coordinating the economic and political policies at different countries.

This paper analyzes the effect of exchange rate movements on exporters’ R & D investments, using 2008-2011 merged firm-level data from “China’s National Tax Survey (CNTS)” and “Census of Export Transactions”. Specifically, we expand Aghion et al. (2009) model to empirically investigate exports’ R&D decisions and intensity. We find significant negative impacts of firm-level real exchange rate appreciation and volatility risk on both exports’ R&D investments probability and intensity. However, the adverse effects are proportional to exports’ financial constraint level, exporters with softer constraints are better able to insulate their R&D investment from exchange rate movements. Furthermore, exporters with more government supports also document less adverse effects. Other sources of heterogeneity, such as export product variety, export destination variety and markup also matter. The results appear robust to different measures of firm-level exchange rate, subsamples, and econometric specifications.

This essay constructs an information disclosure index using analysis on the price trend in past issues of Report on Monetary Policy Implementation by the People’s Bank of China. Methods such as variance measurement are applied in constructing the index. Then we use a SVAR model to quantify the impacts on public inflation expectations of certain variables, respectively. These variables include price changes, the output gap, traditional monetary policy instruments and information disclosure of the central bank. The empirical results show that information disclosure of the central bank, as well as other variables, all have significant impacts on inflation expectation. The model also indicates that information disclosure of the central bank works superior to traditional monetary policy instruments, be it quantitative ones or price-based ones. It is feasible, therefore, for the central bank to improve inflation expectation management by improved communication with market participants.

This paper constructs a two periods panel data model with the data from CFPS in 2010 and 2012, and studies the effect of housing value changing to the consumption of urban residents with empirical method. It also analyzes the aspect of housing mortgages and the heterogeneity of the wealth to the wealth effect from the housing value. The results show that the house has significant wealth effect on the consumption of urban residents; The housing mortgage provides the leverage for the housing buyers and makes the wealth effect higher; For the families holding multi-house, the wealth effect is more significant; For the families with smaller housing asset to total asset ratio, the wealth effect is higher and the effect becomes lower as the consumption properties are getting bigger while the investment properties are getting smaller.

Housing Provident Fund (HPF) provides discount loan and tax-exempt saving for households and at the same time distorts households’ consumption by exerting interest loss, liquidity constraint and loan restriction on households. Therefore, we plan to evaluate the welfare improvements introduced by HPF through measuring the treatment effect of HPF on households’ consumption. Based on panel data IV-2SLS models, this research shows that HPF has no effect on promoting the consumption of households from two types: without properties and with properties and loan; HPF can only increase the consumption of households with property but without loan. It is necessary to promote the flexibility of mortgage of HPF and lower the liquidity constraint in order to increase households' consumption and welfare.

Based on a theoretical model and empirical results from panel data of Chinese industrial firms, we find industry clustering to facilitate firm innovation and productivity growth by relaxing financial constraints, and further accelerate regional convergence towards the technology frontier. The model reveals the effect of industry clustering as a result of the higher market value of firms’ collateralized assets due to more first-best alternative users. Empirical findings confirm theoretical hypotheses using comparisons across industries that differ in the probability of systematic risks and reliance on fixed assets, and quantify the mediation effect using firm-level financial constraint measures. Industry clustering is critical for achieving a knowledge economy and balanced growth.

Based on the research object of the entity enterprises which participate in private financial institutions from 2005 to 2014, this paper studies the motivation and economic consequences of the entity enterprise to participate in financial institutions. According to the property attribution, the empirical results show that state-owned entity enterprises are inclined by government intervention to participate in private financial institutions; on the contrary, non-state-owned entity enterprises are inclined by market competition pressure and financial constraints. The economic consequences revealed that the participation in private financial institutions obviously improved the performance of non-state-owned entity enterprises and reduced their financial constraints but led to a great decrease of the performance and total factor productivity of state-owned entity enterprises. Further study found that from the participation in private financial institutions, state-owned entity enterprises got more subsidies while non-state-owned entity enterprises got more bank loans. The results above show that the combination of state-owned enterprises between industry and finance is caused by government intervention while that of non-state-owned enterprises is their free choice driven by market competition pressure and financial constraints.

The article investigates the “fairness” of the VAMs (Valuation Adjustment Mechanism) adopted by China’s enterprises in venture financing. We treat VAM as binary options and price 20 VAMs using Binomial Tree Model. We find that almost all VAMs are mispriced such that there are high “premium” charged by the financial institutions as investors. To justify the “fairness” of the premium, we present risk factors to explain the “premium”. We finally find that less than half of the “premium” can be justified by the risk factors, which means a significant part of the premium might be attributed to “over-protection” of the investors.

This paper models time-varying asymmetric tail dependences among the stock markets, bond markets, and commodity futures markets by a dynamic Skewed-t copula approach. Copula correlations and tail correlations are both higher within the same classes of assets than across ones. Portfolios including commodities diversify part of the tail risk in the benchmark portfolio and generate diversification benefits. Agriculture index occupies relatively heavier weights than other commodity futures indices in minimized tail risk portfolios. Our results imply that opening market access to commodity futures markets for financial institutions can benefit not only financial institutions from decreased tail risk in portfolio, but also hedgers from improved mechanism of risk sharing in commodity futures markets.

This paper explores the relationship between the portfolio concentration of ultimate controller and future stock returns of Listed Companies, by examining the 2009-2015 China A-share listed companies’ data, this paper finds that the higher the ultimate controllers portfolio concentration is, the higher future stock returns of the listed companies. The result shows that, in the study to find the mechanism, the company whose the ultimate controller has high portfolio concentration has the better future performance, the higher quality of internal control and the lower agency cost. By improving the ultimate controller portfolio concentration, the value of the company is enhanced. Based on these conclusions, this study builds a hedge strategy by the portfolio concentration, buying the companies whose ultimate controller with high portfolio concentration, in the sale of the companies whose ultimate controller with low portfolio concentration. The results showed that the hedge strategy can get significant excess returns in short and long term. This shows that investors in China's stock market have not fully internalized the information of ultimate controller portfolio concentration. In the following inspection, we find that the hedge strategy is more effective in the firms with indirect control than those with direct control, the hedge strategy is more effective in the firms with low information transparency than those with high information transparency.

The lack of financial literacy may hamper the ability of households to make well-informed financial decisions as the increasing development of the financial market. While the quality financial advice can improve the households’ financial decisions. The relationship between the households’ financial literacy and the demand of financial advice is investigated in this paper using the data from “Chinese Survey of Consumer Finance and the Investor Education”. The study finds that financial advice can be complementary to households’ financial literacy, i.e. the household with high level of financial literacy is more likely to have the demand of financial advice. The paper also finds: (1) the demand for financial advice is “hump” shape related to household income and is “U” shape related to the age of head; (2) the household’s net-wealth, health status, and education levels have positive effect on the demand for financial advice; (3) compared to men, women are more likely to consult an advisor.

We examine whether financial media coverage of startups has information content. Using a sample of startups raising Series A funding from 1994 to 2014, we find evidence that both the media exposure and the media tone can forecast future performance of a startup. Specifically, the weekly number of media reports and the positive tone in the reports are positively associated with the amount of venture capital funding raised by the startup in the next round and the probability of the startup to go public or be acquired in the future. In addition, we find the signal effect of media coverage is weaker when the venture capitalists’ reputation is higher.

Using a sample of Chinese listed firms for the period of 2004-2014 and hand-collected data on the globalizing board, this study empirically investigates the effect of the globalizing board on cash dividend. Our findings show that the globalizing board has a significantly positive impact on cash dividend. Moreover, analyst coverage attenuates the positive association between the globalizing board and cash dividend. Furthermore, after considering the semi-mandatory dividend policy, our findings show that the positive association between the globalizing board and cash dividend is significantly stronger for pre-2008 period than for post-2008 period. Above findings are robust to alternative measures of the globalizing board and cash dividend and further our conclusions are still valid after controlling for the potential endogeneity between the globalizing board and cash dividend. Results of subsample tests show that the positive effect of the globalizing board on cash dividend only exists for the subsamples of higher Marketization and non-state-owned enterprises.