Expansion of Financial Channel for the Construction of China's Highways

China’s highways started at a low level in facilities. In 1949, the total mileage of the whole coun-try’s highways was only 80,000 km, with a density of 0.001 km/sq km. Following the founding of New China, especially since the 1980s, great changes have taken place in the facilities of China’s highways. By the end of 1995, the

Research on Efficiency of Financial Supports in Agricultural Industrialization in China

The agricultural industry development in China has been very successful, but there exist some problems, such as weak financial support strength. With the help of DEA-Malmquist index method, this paper evaluated the efficiency of the agricultural industrialization＇s financial supports, made a deep study of its influencing factors, which have an extremely important influence on the perfect agricultural industrialization＇s development.

Non-Symmetry of China’s and US Monetary Policy Spillovers:Theoretical Modelling and Empirical Analysis

This study develops a structural vector autoregression(SVAR)framework to empirically examine the reciprocal transmission channels of monetary policies between China and the United States.The primary objective is to discern potential disparities in the spillover effects of monetary policies and ascertain any contrasting mechanisms underlying these effects across the two countries.Based on our research,it appears that there exists a certain level of non-symmetry in the spillover effects of monetary policy between the two countries.Moreover,this paper provides adequate analysis of disparities in the trade framework,capital control,and financial market operations of both countries in constructing a dynamic stochastic general equilibrium(DSGE)model that incorporates financial frictions for the examination of the theoretical rationale.The empirical findings indicate that China’s monetary policy creates a spillover effect primarily through trade.In China,following an increase in its interest rates,the domestic economic activity will experience a contraction,leading to a decline in both investment and output.Consequently,this will result in a decrease in China’s imports of investment goods from the United States,impacting the output of the US economy.In contrast,the US monetary policy exerts a spillover effect primarily through finance.An increase in interest rates by the United States is associated with a notable outflow of capital from China.This leads to a rise in the financing costs for Chinese firms,consequently diminishing their overall net worth.In light of the financial accelerator effect,corporate external financing risk premium will continue to increase,exacerbating the downward trajectory of China’s output.

To What Extent Does Corporate Investment Benefit from the Firm's Financial Activities?

The impressive development of China's economy over the past few decades has enabled non-financial firms to adopt financial investment in exchange for enhanced financing behavior and short-term profit(shareholder value)maximization,while the persistence of fixed investment leading to dramatic capital accumulation has spurred the nation's rapid economic growth.The existing literature has extensive discussions on the crowd-out effect of financial activities on non-financial firms'fixed investment but overlooks to what extent and under what forces financial activities potentially benefit real investment.This paper investigates whether profits from financial activities have an inverted U-shape relationship with firms'fixed investment.In particular,we aim to identify if the benefit of financial profit on fixed investment is through the financial constraint channel and/or ownership structure channel for Chinese-listed firms from 2003 to 2018.We present robust evidence to support the inverted U-shape relationship between financial profit and fixed investment for the whole sample of firms as well as the split samples of firms(SOEs and non-SOEs).Moreover,among all channels including cash flow,debt financing,managerial shareholding,ownership concentration,and state ownership,this research documents that financial profit mainly benefits firms by reducing debt burden.Firms with concentrated ownership and strong state shareholding are also more likely to crowd-out real investment or potentially alleviate overinvestment.Nevertheless,non-SOEs are more prone to benefit from financial profits by reducing the debt overhang problem than SOEs,whereas ownership concentration for SOEs non-increments the crowd-out effect.