Annual Conference

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Economic Transformation of Asia

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May 2015

Rising Intergenerational Income Persistence in China

Junsen ZHANG, Fan YI, Junjian YI
This study attempts to provide the first systematical analysis of the temporal patterns of crosssectional inequality and intergenerational mobility amid China’s economic transition and growth. First, we estimate the declining pattern of intergenerational mobility in income and education with respe...
Keywords: The Great Gatsby curve, cross-sectional inequality, intergenerational mobility
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2018

Rise of Bank Competition: Evidence from Banking Deregulation in China

Haoyu GAO, Hong RU, Xiaoguang YANG, Robert M. TOWNSEND
Using proprietary individual level loan data, this paper explores the economic consequences of the 2009 bank entry deregulation in China. Such deregulation leads to higher screening standards, lower interest rates, and lower delinquency rates for corporate loans from entrant banks. Consequently, in ...
Keywords: Bank Competition, China, Credit Allocation, Growth, Efficiency
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Annual Conference

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Household Finance

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May 2025

Rigid Mortgage Rates and Monetary Policy Transmission

Zhenyu GAO, Wenxi JIANG, Haohan REN, Kemin WANG, Yuezhi WU
During the 2019–2024 monetary easing cycle, Chinese households used their savings to prepay unprecedented amounts of mortgage loans. Mortgage rates remained rigid due to banks’ market power and refinancing restrictions, while savings returns quickly adjusted to rate cuts. The widening gap betwee...
Keywords: mortgage prepayments, mortgage rate rigidity, monetary policy, household consumption
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Annual Conference

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Investment Finance

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May 2024

Revisiting the Cross-Section of Expected Stock Returns: Evidence from a Textual Analysis of Buy Recommendations

Hailiang CHEN, Byoung-Hyoun HWANG, Zhuozhen PENG
Our paper examines sell-side analyst reports and online stock opinion articles, which recommend that investors buy stocks that, based on prior literature, trade at comparatively high prices and earn low future returns. We conduct textual analysis and test whether the justifications provided in these...
Keywords: Cross-Section of Expected Stock Returns, Anomalies, Risk, Behavioral Finance, Textual Analysis.
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Reverse Mergers, Shell Value, and Regulation

Charles M. C. LEE, Yuanyu QU, Tao SHEN
Using a comprehensive sample of reverse merger (RM) transactions, we examine the effects of China’s IPO regulations on the prices and returns of its publicly listed stocks. During 2007-2015, unlisted Chinese firms paid an average of 3 to 4 Billion RMB for each listed shell, an amount exceeding 2/3...
Keywords: reverse mergers, shell value, anomalies, regulation risk, IPOs, Chinese equity markets
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