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This paper first proposes a European option pricing method for deposit insurance based on triangular intuitionistic fuzzy numbers. In the proposed method, we take into account the randomness and fuzziness of bank asset value simultaneously, and hence, the method can adequately reflect the high uncertainty of bank asset value. This method fuzzifies the value of bank asset, resubmits it into the original deposit insurance option pricing model as a fuzzy random variable, and then gives an analytic formula of deposit insurance rates using a risk-neutral method. After this, we have also conducted a numerical analysis. In specific, we have obtained the premium interval and presented the static analysis of key parameters. Finally, seven small- and middle-sized banks in Hunan Province in China are used as examples to validate the proposed interval pricing model. The Black-Scholes option pricing model and Yoshida's triangular fuzzy model are also employed for comparison. The research results show that the interval rates obtained from the proposed European option pricing method for deposit insurance can better reflect the uncertainty of bank asset evaluation than the fixed rates obtained from the Black-Scholes option pricing model. Moreover, the model proposed in this paper is also superior to Yoshida's model in practice. [ABSTRACT FROM AUTHOR]

We examine the role of gold as a hedge and safe haven from the perspective of Chinese investors. Using the Shanghai Futures Exchange (SHFE)‐Gold futures prices and the CSI 300 index from 2008 to 2017, we find that gold is not a hedge against the Chinese stock market on average. However, gold acts as a safe haven when market returns are below their 1%, 5%, and 10% quantiles and during the two crash periods. Our findings apply to most of the industry sectors as well. We also show that the role of gold can change drastically due to some market policy reforms. [ABSTRACT FROM AUTHOR]

This paper uses a wavelet approach to examine the relationship between gold prices and the Chinese stock market over the past quarter-century. Our empirical study with weekly data shows that gold cannot be used as a short-term hedging tool in China in the full sample period, but it can be used as a long-term hedging tool in the sample period after 2005, concurrent with changes in Chinese government policy. This conclusion also emerges when weekly data are replaced by monthly or daily data. However, similar changes in the long-term hedging ability of gold are not observed in the UK and the US. Thus, this change in the ability of gold to serve as a hedge in China can probably be attributed to shifts in some important market policies, such as the reform in nontradable shares in the Chinese capital market and the exchange rate reform in 2005. [ABSTRACT FROM AUTHOR]

In this paper, we utilize a panel dataset that covers 1245 listed companies which accomplished their IPO during 2006 to 2014 in China to investigate the impact of venture capital (VC) firms on executive compensation, equity incentive and pay-performance-sensitivity. We make several key findings: First, we find the presence of VCs can significantly raise the executive compensation. Second, high reputation VCs and private VCs increases the likelihood of granting executive equity incentives, whereas foreign VCs are significantly negatively related with executive equity incentive. Third, the pay-performance sensitivity of government VCs and foreign VCs is significant on stock return (RET) whereas insignificant on accounting performance (ROA). Moreover, the increasing VCs share in portfolio companies enhance the pay performance sensitivity on RET. Our results show that before VCs final exiting their post-IPO portfolio companies in China, VCs’ impact on executive compensation are more consistent with grandstanding theories and intending to provide higher cash compensation to encourage executives to raise the companies’ stock price, which is indicating VCs’ changing role from a coach into a speculator after the portfolio companies’ IPO. [ABSTRACT FROM AUTHOR]

In this paper, we research on grey prediction based on de-noising via empirical mode decomposition and modified Savitzky-Golay approach. Oscillating signal is decomposed adaptively into intrinsic oscillatory components called intrinsic mode functions (IMFs). We filter IFMs through modified Savitzky-Golay filter. Then we predict IMFs filtered with grey prediction GM (1, 1) before signal reconstruction. This new method is applied to the data of Shanghai stock exchange index and the results are compared to the grey prediction based on wavelets. [ABSTRACT FROM AUTHOR]

We evaluate China’s neutralization policy by monthly estimations based on the central bank balance sheet from 1999:6 to 2011:6. Our results suggest that China effectively neutralizes 66% of the change of net foreign assets under a pegged currency regime. Consequently, a purchase of one yuan of net foreign assets leads to an effective increase of 1.4 yuan in the money supply, rather than 4 yuan in the absence of neutralization. In the face of rapid growth of foreign reserves, neutralization in China is becoming increasingly difficult, consistent with Mundell’s hypothesis. [ABSTRACT FROM AUTHOR]

We use a comprehensive database of sovereign credit ratings (SCRs) from Moody’s, Standard and Poor’s and Fitch for a cross-section of 120 countries from 1986–2009. Using panel data, we find that GDP per capita, the GDP growth rate and the degree of industrialization positively affect ratings, while the government cash flow deficit, the current account surplus, inflation, the lending minus deposit rate interest spread, the S&P global equity index, and a country’s default history negatively affect the sovereign rating of a country. An ordered probit model suggests that while earlier ratings may have been underestimated, recent Chinese sovereign credit ratings are not. [ABSTRACT FROM AUTHOR]

We estimate China's demand for foreign reserves from 1994:1 to 2007:4. Using a monetary model for China's reserve demand, we take into account the People's Bank of China's systematic neutralization policy to reduce inflation. While ultimately inconsistent, this policy has led to a growth in foreign exchange reserves that seems limitless: a neutralization coefficient of 0.57 leading to a “magnification effect” on the increase in reserves of 2.3. That is, a purchase of foreign reserves leads to a contraction of domestic credit of 57% of the foreign exchange purchase, which in turn magnifies the surplus under a stable exchange rate. [ABSTRACT FROM AUTHOR]

In order to understand the environmental trend of network finance and the impact of network finance on traditional ommercial banks, after analyzing the transaction risks of network finance, this study learns from the advanced models of credit risk measurement and early warning at home and abroad and the latest artificial intelligence technology, combining them with China's national conditions, so as to establish a credit risk measurement system suitable for commercial banks. In this study, the research is carried out from the perspectives of theory and practice, technology and business, and the credit risk warning system, measurement model and implementation tools are comprehensively sorted out, then the basic theories and core ideas are studied. In accordance with the concept of big data mining, this study proposes a financial crisis early warning model based on artificial intelligence system. Based on the empirical analysis of the main causes of the rapid decline in the asset quality of China's joint-stock​ commercial banks, and based on the characteristics of big data mining in the information explosion era, it is pointed out that the artificial intelligence is a powerful tool to improve the ability of credit risk measurement. It can be confirmed that the development of network finance has brought different impacts on the business, business model, and business philosophy of banks. [ABSTRACT FROM AUTHOR]

Purpose: This study aimed to investigate the molecular mechanisms of Compound Sidaxue (SX), a prescription of Chinese Miao medicine, in treating rheumatoid arthritis (RA) using network pharmacology and in vivo experimental approaches., Methods: Network pharmacology was adopted to detect the active components of four Traditional Chinese herbal medicine (TCM) of SX, and the key targets and signaling pathways in the treatment of RA were predicted, and the key components and targets were screened for molecular docking. The predicted targets and pathways were validated in bovine type II collagen and incomplete Freund's adjuvant emulsifier-induced rat RA model., Results: In this study, we identified 33 active components from SX, predicted to act on 44 RA-associated targets by network pharmacology. PPI network demonstrated that TNF-α, VEGF-A, IL-2, IL-6, AKT, PI3K, STAT1 may serve as the key targets of SX for the treatment of RA. The main functional pathways involving these key targets include PI3K-AKT signaling pathway, TNF signaling pathway, NF-κB signaling pathway. Molecular docking analysis found that the active components β-amyrin, cajanin, eleutheroside A have high affinity for TNF-α, VEGFA, IL-2, AKT, and PI3K, etc. SX can improve joint swelling in Collagen-induced arthritis (CIA) rats, reduce inflammatory cell infiltration and angiogenesis in joint synovial tissue, and down-regulate IL-2, IL-6, TNF-α, VEGF, PI3K, AKT, p-AKT, NF-κBp65, the expression of p-NF-κBp65, STAT1, and PTGS2 are used to control the exacerbation of inflammation and alleviate the proliferation of synovial pannus, and at the same time play the role of cartilage protection to achieve the effect of treating RA., Conclusion: Through a network pharmacology approach and animal study, we predicted and validated the active compounds of SX and their potential targets for RA treatment. The results suggest that SX can markedly alleviate CIA rat by modulating the VEGF/PI3K/AKT signaling pathway, TNF-α signaling pathway, IL/NF-κB signaling pathway., Competing Interests: The authors report no conflicts of interest in this work., (© 2022 Wu et al.)