This study discusses the current development of China’s trade and investment and theirrelated issues. It presents data consistent with the hypothesis that Chinese firms try toovercome market impediments, such as capi...This study discusses the current development of China’s trade and investment and theirrelated issues. It presents data consistent with the hypothesis that Chinese firms try toovercome market impediments, such as capital account inconvertibility and differential taxtreatment between foreign and domestic firms, through trade and investment. Variouschallenges and opportunities related to China’s future trade and investment are also discussed.展开更多
This paper examines the impact of stock ownership segmentation in listed companies on theinvestment banking business in China. Assuming that holders of non-floatable shares tryto maximize book value of shares, we exp...This paper examines the impact of stock ownership segmentation in listed companies on theinvestment banking business in China. Assuming that holders of non-floatable shares tryto maximize book value of shares, we explain why controlling shareholders will prefer toraise equity financing through the higher-priced public equity market. We explain whymergers and acquisitions of listed companies on the exchanges are all unlikely to be seen inChina. Finally, we shed light on a commonly observed sequential financing pattern inChina why Chinese firms restructure through a process of mergers and acquisitions andthen refinance through the equity market. Our results show that the Chinese investmentbanking business is severely constrained in the direction of equity financing.展开更多
文摘This study discusses the current development of China’s trade and investment and theirrelated issues. It presents data consistent with the hypothesis that Chinese firms try toovercome market impediments, such as capital account inconvertibility and differential taxtreatment between foreign and domestic firms, through trade and investment. Variouschallenges and opportunities related to China’s future trade and investment are also discussed.
文摘This paper examines the impact of stock ownership segmentation in listed companies on theinvestment banking business in China. Assuming that holders of non-floatable shares tryto maximize book value of shares, we explain why controlling shareholders will prefer toraise equity financing through the higher-priced public equity market. We explain whymergers and acquisitions of listed companies on the exchanges are all unlikely to be seen inChina. Finally, we shed light on a commonly observed sequential financing pattern inChina why Chinese firms restructure through a process of mergers and acquisitions andthen refinance through the equity market. Our results show that the Chinese investmentbanking business is severely constrained in the direction of equity financing.
