The Pre-Announcement Drift in China: Government Meetings and Macro Announcements
Jun Pan, Qing Peng, Mar 20,
2024
Confirming Chinese equity market is policy-driven, this study reveals a significant pre-Govt return before top government meetings, akin to the US pre-FOMC drift. It highlights the market's anticipation of these events and their impact on asset pricing, underscoring the centralized financial system in China.
State Versus Market: China’s Infrastructure Investment
Shuoge Qian, Hong Ru, Wei Xiong, Mar 13,
2024
In 2005, the Chinese government launched the landmark “36 Clauses” reform, marking a critical step toward forging a more favorable market environment.
Improving Regulation for Innovation: Evidence from China’s Pharmaceutical Industry
Ruixue Jia, Xiao Ma, Jianan Yang, Yiran Zhang, Mar 06,
2024
In 2015, China revamped its pharmaceutical regulations, drawing inspiration from the US, to accelerate drug approvals. Using data at the drug and firm levels during 2011–2021, this study reveals three key outcomes.
Brain Drain to the State Sector: Job Preferences and Outcomes for China’s College Graduates
Hongbin Li, Lingsheng Meng, Yanyan Xiong, Sinclair Cook, Feb 28,
2024
Despite private enterprises dominating China’s labor market, college-educated workers are still highly concentrated in the state sector. Using data from the Chinese College Student Survey, we find that 64% of students in the sample expressed a strong preference for state-sector employment.
Lucky Dragons
Chih Ming Tan, Xiao Wang, Xiaobo Zhang, Feb 21,
2024
This article explores the intriguing connection between Chinese zodiac signs and parental investment in children’s development. Particularly, parents invest more in children born under the “lucky” sign of the dragon, potentially impacting their cognitive and noncognitive skills alike.
“To Go Electric or to Burn Coal? A Randomized Field Experiment of Informational Nudges”
Hanming Fang, King King Li, Peiyao Shen, Feb 07,
2024
We conducted a randomized field experiment of informational nudges in northern China to investigate the potential obstacles that may hinder households from adopting cleaner heating, and evaluate the effectiveness of simple SMS nudges in encouraging the transition to electric heating.
Discounting Chinese Industrial Policy
Andrew J.Sinclair, Chuyi Zhang, Jan 31,
2024
The Chinese government supports the development of dozens of industries today, but the long-run sustainability of this model depends crucially on policy efficiency.
Labor Market Discrimination against Family Responsibilities: A Correspondence Study with Policy Change in China
Haoran He, Sherry Xin Li, Yuling Han, Jan 24,
2024
China shifted its controversial one-child policy (1979–2015) to a two-child policy in 2016. We take advantage of the unexpected timing of this policy change and the heterogeneities in the pre-change environment to investigate labor market discrimination against expected family responsibilities.
Cash in the Darkness
Haohan Ren, Kemin Wang, Bohui Zhang, Fan Zhang, Jan 12,
2024
Relying on a large dataset on cash withdrawals of over 165 million bank cards from China, we find a higher ratio of cash withdrawals late at night is associated with criminal activity.