China in Tax Havens
AEA Papers and Proceedings
vol. 113,
May 2023
(pp. 114-19)
Abstract
We document the rise of China in offshore capital markets. Chinese firms use global tax havens to access foreign capital in both equity and bond markets. In the last 20 years, China's presence went from raising a negligible amount of capital in these markets to accounting for more than half of equity issuance and around a fifth of global corporate bonds outstanding in tax havens. Using rich micro data, we show that a range of Chinese firms, including both tech giants and state-owned enterprises, use these offshore centers. We conclude by discussing the macroeconomic and financial stability implications of these patterns.Citation
Clayton, Christopher, Antonio Coppola, Amanda Dos Santos, Matteo Maggiori, and Jesse Schreger. 2023. "China in Tax Havens." AEA Papers and Proceedings, 113: 114-19. DOI: 10.1257/pandp.20231001Additional Materials
JEL Classification
- F21 International Investment; Long-term Capital Movements
- G12 Asset Pricing; Trading Volume; Bond Interest Rates
- H87 International Fiscal Issues; International Public Goods
- L22 Firm Organization and Market Structure
- L32 Public Enterprises; Public-Private Enterprises
- P31 Socialist Enterprises and Their Transitions
- P34 Socialist Institutions and Their Transitions: Financial Economics