Analysis of the interest rate marketization risk of local banks in Henan Province --Taking four joint stock commercial banks as an example

With the accelerating process of interest rate marketization, the local banks in Henan Province face a greater risk of interest rate marketization, managing risk effectively can promote the development of local banks in Henan Province and the economic development of Henan Province. This paper analyzes the present situation of management of interest rate marketization in Henan Province, then puts forward some suggestions, such as promoting the development of intermediate business; promoting the product innovation; strengthening the management of assets and liabilities, improving the quality of employees, strengthening the management of non-performing loans, and etc.

Empirical analysis of the monetary policy transmission through interest rate channel in China

With the deregulation of interest rates in China, the interest rate channel of monetary policy transmission is becoming more and more important. Firstly, this paper makes empirical studies on the transmission mechanism in China represented by the conventional interest rate channel of monetary policy transmission by using the Granger causality test. The result shows that there is no causality neither between investment expenditure and the market interest rate nor between household consumption and the market interest rate, which suggests that the transmission of monetary policy in China is impeded. Then the reasons from three aspects including interest rate liberalization, asset-backed securitization and household consumption behavior are analyzed.

Interference of Local Government, Industrial Concentrative Rate and Corporate Diversification

This paper studies the effects of internal and external environments on the strategic decision-making of diversification using the cross-sectional data of China＇s 1 033 non-financial listed companies in Shenzhen and Shanghai Exchange. Corporate external-environment is substituted by index of marketization and market concentrative rate, and internal-environment is substituted by governance framework and financial status. The multi-regression analysis shows that the strategic decision-making of diversification is prominently affected by external factors such as index of marketization and market concentrative rate, and is significantly negative related to the proportion of state-owned shares and corporate shares. There is no correlation between diversification and whether directors hold concurrently, or manager compensation, cash flow, and debt ratio.

Reliability-based congestion pricing model under endogenous equilibrated market penetration and compliance rate of ATIS

A reliability-based stochastic system optimum congestion pricing(SSOCP) model with endogenous market penetration and compliance rate in an advanced traveler information systems(ATIS) environment was proposed. All travelers were divided into two classes. The first guided travelers were referred to as the equipped travelers who follow ATIS advice, while the second unguided travelers were referred to as the unequipped travelers and the equipped travelers who do not follow the ATIS advice(also referred to as non-complied travelers). Travelers were assumed to take travel time, congestion pricing, and travel time reliability into account when making travel route choice decisions. In order to arrive at on time, travelers needed to allow for a safety margin to their trip.The market penetration of ATIS was determined by a continuous increasing function of the information benefit, and the ATIS compliance rate of equipped travelers was given as the probability of the actually experienced travel costs of guided travelers less than or equal to those of unguided travelers. The analysis results could enhance our understanding of the effect of travel demand level and travel time reliability confidence level on the ATIS market penetration and compliance rate; and the effect of travel time perception variation of guided and unguided travelers on the mean travel cost savings(MTCS) of the equipped travelers, the ATIS market penetration, compliance rate, and the total network effective travel time(TNETT).

TRANSFORM THE MECHANISM OF RENMINBI’S EXCHANGE RATE SYSTEM IN CONFORMITY WITH THE DEMAND OF MARKET ECONOMY——The academic report delivered at the Annual Meeting of NNCIFS on October 1993

Exchange rate functions under systems of centrallyplanned economy and market economy are quite different,and the mechanism to determine such exchange rate is alsodifferent. To adopt a socialist market economic system inChina, the exchange rate mechanism of Renminbi must bethoroughly transformed. To accomplish this goal, I believethere are three problems that must be solved: first,

On Some Short Comings of the Transmission of Monetary Policy in the Euro Area

The great expansionary policies undertaken by the main central banks of the world since the outbreak of the world financial and economic crisis in 2008 did not produce a satisfying recovery of the real economy especially in Europe. In order to identify the causes of this failure, it became necessary to deepen the analysis of the transmission mechanism of monetary policy, and to investigate if there are some obstacles hampering the functioning of this mechanism. The scope of the present papers to analyze some short comings of the transmission mechanism of the monetary policy is conducted by the European Central Bank （ECB） in the euro area. After a close examination of the relationship between the monetary base and the supply of money, transmission through the credit channel and through the interestrate channel will be taken into consideration. The analysis shows that loans to nonfinancial corporations were not affected by the huge amount of liquidity created by the ECB, while a very slow growth is shown by loans to private households during the whole period.

GOVERNMENT POLICIES AND CORPORATE FINANCING DECISIONS IN CHINA:THEORY AND EVIDENCE

This paper examines the effect of government policies on the financing decisions of firms in China. A real options model is developed to understand how fiscal and monetary policies affect corporate leverage.The model predictions will be tested with a comprehensive panel data set spanning from 2002 to 2011.This work documents robust evidence that show the positive association of both tax and risk-free rate with firm leverage：increase in tax rate and risk free rate by one standard deviation results in the increase in corporate leverages by 0.61 to 1.06 percent and 2.54 to 3.68 percent,respectively.In addition,the productions of the firms are not affected by the tax rate in the short run,and the firms are operating in their optimal market leverage.The implied tax rate and risk free rate are solved by assuming that the firms achieve their optimal leverages.The implied tax rate declines with the size, whereas the opposite goes for implied risk-free rate.

Investigating the effects of gradual deployment of market penetration rates(MPR)of connected vehicles on delay time and fuel consumption

Purpose–This research paper aims to investigate the effects of gradual deployment of market penetration rates(MPR)of connected vehicles(MPR of CVs)on delay time and fuel consumption.Design/methodology/approach–A real-world origin-destination demand matrix survey was conducted in Boston,MA to identify the number of peak hour passing vehicles in the case study.Findings–The results showed that as the number of CVs(MPR)in the network increases,the total delay time decreases by an average of 14%and the fuel consumption decreases by an average of 56%,respectively,from scenarios 3 to 15 compared to scenario 2.Research limitations/implications–The first limitation of this study was considering a small network.The considered network shows a small part of the case study.Originality/value–This study can be a milestone for future research regarding gradual deployment of CVs’effects on transport networks.Efficient policy(s)may define based on the results of this network for Brockton transport network.

An Overview of China’s Bond Markets

This paper introduces the current structure and practice of China＇s bond markets in general and corporate bond market in particular. It analyses the factors behind the slow development of China＇s bond markets： heavy government intervention, underdevelopment of direct financing, etc. It also puts forward policy options in promoting bonds markets development, including reform of government regulatory framework and improving financial intermediaries and services.