Corporate foreign bond issuance and interfirm loans in China

• 成果类型: Article
• 署名作者: Huang, Yi; Panizza, Ugo; Portes, Richard
• 署名单位: Fudan University; University of London; London Business School; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2024.103975
• 发表日期: 2024
• 关键词: china; Bond issuance in emerging market countries; Carry trade; shadow banking

摘要

We use firm-level data to analyze international bond issuance by Chinese non-financial corporations, distinguishing those by sectors classed as 'risky'. Dollar issuance is positively correlated with the differential between domestic and foreign interest rates, and this effect is particularly strong for firms in risky sectors. Strikingly, firms in risky sectors use the proceeds to do more interfirm lending than firms in non-risky sectors. Moreover, this lending rose significantly after the authorities sought to restrict the financial activities of risky sectors in 2008-09. Firms in risky sectors compound risk by engaging in speculative activities that mimic the behavior of financial institutions while escaping prudential regulation.