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China in Tax Havens

By Christopher Clayton, Antonio Coppola, Amanda Dos Santos, Matteo Maggiori, and Jesse Schreger

AEA Papers and Proceedings, May 2023

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 mark...

The Stock Connect to China

By Zhiguo He, Yuehan Wang, and Xiaoquan Zhu

AEA Papers and Proceedings, May 2023

As a bridge between Chinese mainland and international financial markets, the Stock Connect program allows investors on both sides to gain mutual access. By analyzing how cross-border flows respond to macro-related shocks, we show that compared with possi...

Debt Distress on China's Belt and Road

By Sebastian Horn, Bradley C. Parks, Carmen M. Reinhart, and Christoph Trebesch

AEA Papers and Proceedings, May 2023

This paper shows that China's lending boom to developing country sovereigns has largely ended and that debt distress and defaults are increasingly common. Chinese lenders react to this challenge through two main coping strategies: first, bilateral soverei...