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This study examines the probability of survival of online peer‐to‐peer (P2P) lending platforms in China. Our empirical findings show that shareholder's background, platforms' risk management and institutional environment are three major factors that influence the probability of survival of P2P platforms in China. In addition, the effects of risk control and institutional environment are less pronounced in state‐owned P2P platforms. We also show that platforms that die from abscondence of owners tend to be more short‐lived than others, while platforms that die from liquidity problems are usually due to lack of high‐quality risk management techniques. [ABSTRACT FROM AUTHOR]

• We conduct tests using bank data in china from 2008 to 2014. • Development of MMFs has shifted away bank deposits. • It reduces banks' ability to make loans. • It has promoted interest rate liberalization in China. • These results remain to hold after robustness check. We report significant effects of the development of money market funds (MMFs) on bank deposits, loans and interest rate liberalization using bank data in China from 2008 to 2014. In particular, the development of MMFs has shifted away bank deposits and reduced banks' ability to make loans. Furthermore, the yields of bank-guaranteed financial products and MMFs show a significant and positive relation, implying that the development of MMFs has promoted interest rate liberalization in China. These results remain to hold after we control for the potential simultaneity bias. [ABSTRACT FROM AUTHOR]

• Residual momentum strategy yields significant profits in the Chinese equity market. • Residual momentum returns cannot be explained by four popular asset pricing models. • Residual momentum profits do not reverse in the long run. • The residual momentum factor is priced in the cross-section of stock returns. In this paper, I find that sorting stocks into portfolios based on their residual, as opposed to raw past returns, generates significant profits in the Chinese equity market and cannot be subsumed by the well-established factor models. Moreover, the residual momentum profits do not reverse in the long run (up to three years), supporting the investor underreaction hypothesis. Further analysis reveals that residual momentum is priced in the cross-section of stock returns whereas the Carhart (1997) momentum factor is found to be redundant for describing average stock returns. [ABSTRACT FROM AUTHOR]

Securities Laws in China are administered by the China Securities Regulatory Commission (CSRC). The CSRC has great flexibility in administering securities laws since the committee represents the will of the state. Under the state‐controlled financial system, the CSRC works closely with state‐controlled financial firms and suggests, but does not mandate, actions to be taken in the equity market, especially during periods of extreme market stress. These suggestions, or soft interventions, have been used to block trades associated with short sales, significantly reducing short‐sales volume. With daily and intraday data, we investigate the impact of these interventions on put‐call parity and implied volatilities. There is overwhelming evidence of increased deviations from put‐call parity and changes in implied volatility after soft interventions. Our results are robust after allowing for bid‐ask spreads, taxes, transaction costs, and difference‐in‐differences comparisons with control securities in the Hong Kong market. [ABSTRACT FROM AUTHOR]

We examine the influence of political uncertainty on corporate debt financing under the Chinese highly specialized political system. A new reasonable and effective alternative indicator, official turnover reason, is constructed to measure different political uncertainty level. Robust results suggest that listed companies will keep low debt financing level and smooth debt financing volatility under political uncertainty, which will be weakened during the global financial crisis. We also find that the listed company will raise equity financing level while overall financing is significantly reduced. In addition, SOEs are more sensitive to political uncertainty than non- SOEs, as they have stronger political connections with government officials. [ABSTRACT FROM AUTHOR]

This paper examines the impact of competition policy on inter-regional trade barriers among provinces in China. Using data from 28 Chinese provinces for the period 1994-2013, we show that the implementation of competition policy—as measured by a number of indices that we construct—can effectively reduce inter-regional trade barriers. We provide results that are based on both fixed effects and instrumental variables estimators to support the causal nature of the established link. The effect is found to be more salient for provinces with a less corrupt political environment. The results are also shown to be robust across alternative specifications, alternative measures of competition policy, and inter-regional trade barriers. [ABSTRACT FROM AUTHOR]

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China has become a major market for hydrogen used in fuel cells in the transportation field. It is key to control the cost of hydrogen to open up the Chinese market. The development status and trends of China’s hydrogen fuel industry chain were researched. A hydrogen energy cost model was established in this paper from five aspects: raw material cost, fixed cost of production, hydrogen purification cost, carbon trading cost, and transportation cost. The economic analysis of hydrogen was applied to hydrogen transported in the form of high-pressure hydrogen gas or cryogenic liquid hydrogen and produced by natural gas, coal, and electrolysis of water. It was found that the cost of hydrogen from natural gas and coal is currently lower, while it is greatly affected by the hydrogen purification cost and the carbon trading price. Considering the impact of future production technologies, raw material costs, and rising requirements for sustainable energy development on the hydrogen energy cost, it is recommended to use renewable energy curtailment as a source of electricity and multi-stack system electrolyzers as large-scale electrolysis equipment, in combination with cryogenic liquid hydrogen transportation or on-site hydrogen production. Furthermore, participation in electricity market-oriented transactions, cross-regional transactions, and carbon trading can reduce the cost of hydrogen. These approaches represent the optimal method for obtaining inexpensive hydrogen.

Addressing price forecasting problems is an important exercise to policymakers and market participants in the resource business sector. In this work, we build Gaussian process regression models through cross validation and Bayesian optimizations over different kernels and basis functions for daily price index forecasting of ten major steel products in the Chinese market during July 20, 2011–April 15, 2021. This study aims to be the first attempt of exploring potential of Gaussian process regressions for price forecasting exercises with the coverage of all of the ten most important steel products that carry enormous economic significance in China as the largest steel consumer and producer in the world. The models offer accurate out-of-sample forecasts for the two-year period of April 16, 2019–April 15, 2021 with relative root mean square errors ranging from 0.07404% to 0.22379% across the ten price indices and correlation coefficients above 99.9%. They also lead to better forecast performance than some traditional econometric models and some other machine learning models as benchmarks. The models constructed here could be utilized by policymakers as part of policy design and implementations and by market participants as part of market assessments and decision making. • Gaussian process regression models are built to forecast steel price indices. • The models are trained with Bayesian optimizations and cross validation. • Price indices of ten major steel products in China are examined. • The models generate relative root mean square errors of below 0.25% for all indices. [ABSTRACT FROM AUTHOR]

This study takes advantage of the Forbes Rich List as an external shock to examine its effect on internal control quality in mainland China. Using the difference-in-differences (DiD) method for a large sample of 17,910 firm-year observations from 2000 to 2014, we find that firms controlled by entrepreneurs included in the Forbes Rich List tend to have higher internal control quality than firms not controlled by entrepreneurs in the list. The listed entrepreneurs improve their firms' internal control quality by means of reducing the information asymmetry between the firms and outsiders. Further tests show that the event effect is more pronounced when firms have higher misreporting costs and when listed entrepreneurs hold chairman positions than in other situations. Our results remain robust after applying the propensity score matching method, stacked DiD estimation, and an alternative measure of internal control quality. These findings enrich the literature on the effect of the Rich List and the determinants of internal control quality in emerging markets. [ABSTRACT FROM AUTHOR]

North America's first oriented strand board (OSB) mill was built in the early 1980's. Twenty years later, the industry was thriving, with over 50 mills producing the product. China's first OSB mill was built in 1990, and 25 years later, there are a few mills with a total capacity less than two large North America mills, most operating below capacity and struggling to identify domestic markets for the growing production. This paper briefly looks at the histories of OSB industries in North America and China, presents the current situation of China’s wood-based panels industry and its downstream industries, and identifies OSB opportunities and potential products in China. Opportunity for sheathing-grade OSB is very limited in the current Chinese market, whereas industrial opportunities for specialty OSB products to replace plywood have great potential. Those specialty products include materials for furniture, wood doors, wood flooring, container flooring, concrete form, etc. OSB producers must designate the right OSB products for the Chinese market and cost-effectively manufacture those differentiated products to meet specifications for various end-applications.

This article explores the vision of Management Consulting Firms (MCF) specialized in internationalization processes of Spanish companies in China. The main objective is to shed light on a process full of uncertainty as is international expansion into emerging markets on the point of view of the advisors of that process. First, it is analyzed whether there is a Spanish company profile that is internationalized toward China in terms of sector of activity, size and experience in international business. And second, with their client’s experiences, success and failure factors in the internationalization process are studied. To achieve those objectives in depth interviews were held with partners and managers of six Management Consulting Firms with Spanish clients in their portfolio. As a result it is concluded that the sectors where the Spanish company has invested are several, the size of the company is important to undertake an implementation process in China and its international experience as well. Eight key factors were found relevant to invest in China successfully. Five factors are related with their resources (humans and financials) and the other three are related with their strategy. The main reasons of failure are also discussed. The article provides an outside perspective on the reasons why an internationalization process is successful and other fails.