Webinar Series



Internationalizing Like China

The authors empirically characterize how China is internationalizing the Renminbi by selectively opening up its domestic bond market to foreign investors and propose a dynamic reputation model to explain this internationalization strategy. The Chinese government deliberately controlled the entry of foreign investors into its market, first allowing in relatively stable long-term investors like central banks before allowing in flightier investors like mutual funds. Their framework explains these patterns as the result of a government strategy to build its reputation as an international currency issuer while attempting to reduce the cost of potential capital flight as it tries to gain credibility. The dynamics of reputation make Chinese debt a substitute for emerging market risky debt in the early stages of internationalization and more of a substitute for developed market safe debt in the later stages. The authors use their framework to explore how countries compete to become a reserve currency provider. Competition worsens the incentives to build up reputation by reducing the benefits of having a higher reputation. The framework is tractable and can make sense of both new entrants like China and established players like the United States.


Session Chair: Michael SONG
Wei Lun Professor of Economics and Head, Department of Economics, Chinese University of Hong Kong and Senior Fellow, ABFER

10:00 am
Internationalizing Like China

Jesse SCHREGER, Class of 1967 Associate Professor of Business, Economics Division, Columbia Business School, Columbia University

Christopher CLAYTON, Assistant Professor of Finance, Yale School of Management, Yale University
Amanda DOS SANTOS, PhD Candidate at Columbia Business School, Columbia University
Matteo MAGGIORI, The Moghadam Family Professor and Professor of Finance, Stanford University
10:25 am
Zhiguo HE, Fuji Bank and Heller Professor of Finance and Jeuck Faculty Fellow, Booth School of Business, University of Chicago and Senior Fellow, ABFER
10:50 am
11:10 am

Updated 28 Sep 2022


  • Jesse M. SCHREGER

    Jesse M. SCHREGER


    Class of 1967 Associate Professor of Business, Economics Division, Columbia Business School, Columbia University

    Jesse Schreger is an associate professor of macroeconomics in the Economics Division at Columbia Business School. His research is primarily on international finance and macroeconomics, focusing on sovereign debt and exchange rates. His work has been published in the American Economic Review, the Journal of Finance, and the Journal of International Economics.
    Professor Schreger is also a faculty research fellow in the National Bureau of Economic Research’s International Finance and Macroeconomics Program. Prior to joining Columbia, he was an assistant professor at Harvard Business School and a post-doctoral fellow in the Department of Economics at Princeton University.

    Professor Schreger received his PhD in Political Economy and Government from Harvard University. His undergraduate degree in economics and international relations is from the University of Pennsylvania.

  • Zhiguo HE

    Zhiguo HE


    Fuji Bank and Heller Professor of Finance and Jeuck Faculty Fellow, Booth School of Business, University of Chicago and Senior Fellow, ABFER

    Zhiguo He is interested in the implications of agency frictions and debt maturities in financial markets and macroeconomics with a special focus on contract theory and banking. His recent research focuses on the role of financial institutions in the 2007/08 global financial crisis. He is conducting academic research on Chinese financial markets including the stock market, local government debt, shadow banking, and interbank markets together with recent regulation changes. Professor He has also been writing academic articles on new progress in the area of cryptocurrency and blockchains.

    His research has been published in leading academic journals including the American Economic Review, Econometrica, Review of Economic Studies, Journal of Finance, Review of Financial Studies, Journal of Financial Economics, American Economic Journal: Macroeconomics, and Management Science. He has been an associate editor for the Review of Financial Studies and Management Science and currently serves as an associate editor for the Journal of Finance. He serves as the guest editor of the Review of Finance for the “Special Issue on China” in 2020-2021, and will be serving as the Editor for the Review of Asset Pricing Studies starting July 2021.

    Professor He received his bachelor and master degrees from the School of Economics and Management at Tsinghua University before receiving his PhD from the Kellogg School of Management at Northwestern University in 2008. He has been named a 2014 Alfred P. Sloan Research Fellow, and has won numerous awards for his outstanding scholastic record, including the Lehman Brothers Fellowship for Research Excellence in Finance in 2007, the Swiss Finance Institute Outstanding Paper Award in 2012, the Smith-Breeden First Prize in 2012, and the Brattle Group First Prize in 2014. Before joining the Chicago Booth faculty in 2008, he worked as a stock analyst at the China International Capital Corporation in Beijing in 2001 and visited the Bendheim Center for Finance at Princeton University as a post-doctoral fellow.

    In Autumn 2015 Professor He was the Dean’s distinguished visiting scholar at Stanford University, Graduate School of Business, and in winter 2020 he is a visiting professor of finance at Yale University, School of Management. In January 2020, he testified at U.S.-China Economic and Security Review Commission (USCC) Hearing on “China’s Quest for Capital: Motivations, Methods, and Implications.”

  • Michael SONG

    Michael SONG


    Wei Lun Professor of Economics and Head, Department of Economics, Chinese University of Hong Kong and Senior Fellow, ABFER

    Michael Song Zheng (Michael) SONG is Wei Lun Professor of Economics and the Head of the Department of Economics, Chinese University of Hong Kong (CUHK), a Co-Director of CUHK-Tsinghua Joint Research Center for Chinese Economy, a Co-Director of CUHK-Zhejiang University Joint Research Center for Digital Economy and a Distinguished Visiting Professor at Tsinghua University and Zhejiang University. He received B.A. from Shanghai Institute of Foreign Trade (1997), M.A. from Fudan University (2000) and Ph.D. from Stockholm University (2005). Before joining CUHK, he was an Assistant/Associate Professor of Economics at Chicago Booth (2011-15), a Visiting Scholar/Assistant Professor of Economics at CUHK (2009-11) and a Research Fellow at Fudan University (2005-09). He is a Senior Fellow of ABFER and a Fellow of Luohan Academy. His research focuses on Chinese economy and macroeconomics. His papers were published by leading academic journals including American Economic Review, Econometrica and Journal of Political Economy. He won Sunyefang Economic Science Award in 2013. He is an Associate Editor of Econometrica, Review of Finance and was a Co-Editor of China Economic Review. He sits on a number of academic advisory boards such as China’s Economics Foundation and Hong Kong Institute for Monetary and Financial Research.

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Session Format

Each session lasts for 1 hour 10 minutes (25 minutes for the author, 25 minutes for the discussant and 20 minutes for participants' Q&A). Sessions will be recorded and posted on ABFER's web, except in cases where speakers or discussants request us not to.


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