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China in Tax Havens

By Christopher Clayton, Antonio Coppola, Amanda Dos Santos, Matteo Maggiori, and Jesse Schreger

òòò½Íø Papers and Proceedings, May 2023

We document the rise of China in offshore capital markets. Chinese firms use global tax havens to access foreign capital in both equity and bond markets. In the last 20 years, China's presence went from raising a negligible amount of capital in these mark...

The Stock Connect to China

By Zhiguo He, Yuehan Wang, and Xiaoquan Zhu

òòò½Íø Papers and Proceedings, May 2023

As a bridge between Chinese mainland and international financial markets, the Stock Connect program allows investors on both sides to gain mutual access. By analyzing how cross-border flows respond to macro-related shocks, we show that compared with possi...

Debt Distress on China's Belt and Road

By Sebastian Horn, Bradley C. Parks, Carmen M. Reinhart, and Christoph Trebesch

òòò½Íø Papers and Proceedings, May 2023

This paper shows that China's lending boom to developing country sovereigns has largely ended and that debt distress and defaults are increasingly common. Chinese lenders react to this challenge through two main coping strategies: first, bilateral soverei...

Monetary Policy, Market Power, and SMEs

By Annalisa Ferrando, Peter McAdam, Filippos Petroulakis, and Xavier Vives

òòò½Íø Papers and Proceedings, May 2023

Monetary policy aims to affect corporate borrowing by influencing the marginal costs of firms, but its potency can be conditioned by the degree of market competition. We first identify conditions under which changes in marginal costs have different effect...