Who bears risk in China's non-financial enterprise debt?

Anderson, Ronald W. (2020) Who bears risk in China's non-financial enterprise debt? Systemic Risk Centre Discussion Papers (101). Systemic Risk Centre, The London School of Economics and Political Science, London, UK.

Text (dp-101) - Published Version Download (2MB)

• Author
• https://www.fmg.ac.uk/publications/discu...

Abstract

This paper analyses of how risk is allocated in China's markets for debt issued by non-financial enterprises. Compared to other major corporate bond markets China's is unusual in that unlisted, state-owned enterprises account for a large fraction of the debt issued and that the foundations of the corporate and bankruptcy law are young and still evolving. The implications of these features are described and quantified. The results show that the major changes in relative pricing across different market segments cannot be explained well by standard measures of solvency and liquidity. Rather, the most successful explanation is that major policy actions have had the effect of withdrawing implicit guarantees from private issuers and making more explicit the limits of guarantees afforded to state issuers.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.systemicrisk.ac.uk/
Additional Information:	© 2020 The Author(s)
Divisions:	Systemic Risk Centre
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance J Political Science > JQ Political institutions Asia
JEL classification:	G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K40 - General P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P20 - General
Date Deposited:	29 Jun 2023 15:24
Last Modified:	16 Sep 2023 00:00
URI:	http://eprints.lse.ac.uk/id/eprint/118879

Actions (login required)

View Item