China Market Research Articles

Examining the policy outcomes of cancelling the house purchase restriction: quasi-experimental evidence from China

While the impact of the house purchase restriction (HPR) policy on the housing market in China has been deeply examined, there is still little known about how the housing market varies when such policy is abandoned. To fill this gap, we first theoretically propose two hypotheses concerning the relationship between abandoning HPR policy and housing price and transaction based on the housing literature. We then examine the hypotheses by taking Jinan, China as empirical case that offer an excellent policy setting of some districts having discarded the policy while the other remains. The results derived from Synthetic Control Method (SCM) showed that the cancellation of the HPR policy plays a vital role in increasing the transaction volume, but it fails to promote house prices. The findings remain reliable after a series of placebo and robustness tests. This article adds new insight to the debate on efficacy of government intervention via more granular quantitative data, and further contributes to policy implications regarding housing market development.

Sustainable Development of the Real Economy: Supply Chain Finance and Enterprise Financialization

Supply chain finance, as an important financial instrument supporting the sustainable development of the real economy, has attracted significant attention. In this paper, research is conducted on 3181 non-financial listed enterprises in the A-share market in China from 2012 to 2021. Multiple regression analysis is adopted to examine the relationship between supply chain finance and enterprise financialization, as well as the impact of the former on the latter and the underlying mechanisms at play. The research findings indicate that the supply chain finance model, led by core enterprises, tends to exacerbate enterprise financialization in China. The significant resource dependence of small- and medium-sized enterprises (SMEs) on core enterprises acts as a moderating variable for supply chain finance and enterprise financialization. This dependence amplifies the stimulus of supply chain finance on the “financialization” of enterprises, demonstrates a pronounced moderating effect within state-owned enterprises, and strengthens over time when the core enterprises possess information advantages. The findings articulated herein contribute to the scholarly discourse, offering insights into the improvement of supply chain finance and the advancement of the real economy’s sustainable development via financial services. A good supply chain finance model should align with the requirements for the development of China’s real economy. It should provide not only financial assistance to enterprises but also foster a virtuous cycle within the industrial chain and encourage industrial production over financial investment.

The impact of air pollution on cost of debt: Evidence from corporate bond markets

AbstractThis study explores the influence of air pollution on the corporate bond market in China. An air pollution premium is documented, whereby bonds issued in more polluted areas are associated with higher offering yields at issue in the primary market and higher yield spreads in the secondary market. The statistically and economically significant air pollution premium is robust to a battery of sensitivity checks. The air pollution premium is associated with rising investor attention to climate risk in financial markets.

A study on the benefit incidence of a place-based education fee reduction program: Evidence from a local housing market in China

This paper studies an Education Fee Reduction and Exemption Program for preschool childcare in Jinan, China, to explore the benefit incidence among different stakeholders by observing how housing prices and rents change in response to this program and by employing a method of difference-in-differences combined with boundary discontinuity. The empirical findings indicate that the housing prices in the experimental area rose by 5–7 percent while the rents rose by 10–13 percent due to the capitalization effects of this equalization program. Falsification tests are conducted using artificial boundaries and fake policy implementation dates. A back-of-the-envelope welfare analysis demonstrates that a considerable portion of the program's benefits is offset by house price increases for new home buyers and rent increases for tenants, with significant distributional implications for different stakeholders.

Does the Water Rights Trading Policy Improve Water-Use Efficiency? An Environmental Policy Evaluation from China

As a crucial basic natural resource, water resources are the cornerstone for sustainable national economic development. This paper takes the 2014 pilot water rights trading policy (WRT) as an entry point and uses a difference-in-differences (DID) model to test the policy effect of WRT on water-use efficiency (WUE) based on panel data for 30 Chinese provinces from 2005 to 2021. The study shows that WRT can significantly improve the regional WUE, and these results remain valid after a series of robustness tests, such as the parallel trend test, placebo test, and PSM-DID. Mechanistic analysis revealed that WRT can produce the Porter effect, which affects the WUE through technological innovation. The results of the heterogeneity analysis based on the synthetic control method (SCM) showed that WRT effectively improved WUE in Jiangxi, Henan, Ningxia, Hubei, and Guangdong, but did not achieve the expected effect in Inner Mongolia or Gansu. This paper provides solid empirical support for assessing the effectiveness of WRT and accelerating the process of establishing a unified national WRT market in China by 2025.

The Impact of Demographic Change on Consumer Market and Production Sectors in China

The Impact of Demographic Change on Consumer Market and Production Sectors in China

A lost land of opportunity? The geography of intergenerational educational mobility in China

AbstractDespite the significant political, economic and geographical diversity in China, there is limited research on spatial differences in intergenerational mobility in China. This research aims to fill this gap by exploring the spatial and temporal dimensions of intergenerational educational mobility in China. The data used for the analysis is the 2010–2018 China Family Panel Studies (CFPS), a nationally representative longitudinal general social survey. The analysis incorporates both relative and absolute mobility measures to provide a comprehensive description of intergenerational educational mobility. The results reveal substantial regional differences in intergenerational educational mobility across various economic zones in China, with a rising geographic inequality over time. The southwest and northeast regions stand out as the areas where the educational prospects of the young generation have become not only bleaker but dependent more on their parents. Additionally, this study presents the first education Great Gatsby Curve for China, highlighting the strong relationship between intergenerational mobility and education inequality at the regional level, particularly after China's market reform. The findings highlight the need for regionally targeted policies and levelling up agendas to promote educational opportunities in low‐mobility regions.

Cross-Correlation Analysis of Crude Oil-Related Stock Markets in China Caused by the Conflict Between Russia and Ukraine

Cross-Correlation Analysis of Crude Oil-Related Stock Markets in China Caused by the Conflict Between Russia and Ukraine

Chinese Constitutonal Performance Unveiled: Text Mining Insights in Civil Litigations

Abstract This article presents a comprehensive examination of the role of constitutions in private disputes, with a specific focus on the Chinese Constitution. Utilizing an extensive dataset of digitized court adjudications, this study delves into a relatively unexplored area, yielding crucial factual and legal insights. The research reveals that the Chinese Constitution significantly influences civil adjudications, both implicitly and explicitly. Furthermore, court judgments emerge as pivotal forces shaping public awareness of constitutional principles. These findings hold profound implications for comprehending the role of constitutions in contexts beyond democratic frameworks, particularly within the private sphere. The study underscores how the capitalist market in China empowers individuals to assert and safeguard private rights, consequently affording the Constitution a protective role in this realm. Concurrently, the existing regime has systematically eroded the Constitution’s influence in public affairs, maintaining its symbolic and rhetorical role. Notably, the concept of judicial independence remains a sensitive subject in China, leading many civil courts to eschew constitutional provisions in favor of political expediency. This paradox underscores the necessity of establishing a reasonably independent judiciary as an integral facet of constitutionalism in such settings. In sum, this research challenges prevailing assumptions about constitutionalism’s contours. It transcends the conventional focus on political authority, illustrating how empirical investigations into constitutional performance within civil litigation can illuminate the emergence of constitutionalism in the shadows of non-democratic systems. These findings offer valuable insights into the role of constitutions in private disputes and pave the way for further exploration within this evolving scholarly domain. Ultimately, this study advances our comprehension of constitutional realities and their far-reaching impacts on the legal landscape and society within contemporary China.

Research on the spatial spillover effect of carbon trading market development on regional emission reduction

This paper introduces the current situation of carbon trading market in China and the effect of carbon emission reduction in each region. Theoretically, it expounds the influence mechanism and spatial spillover way of carbon trading market on regional carbon emission. Next, we use the data of 30 provinces in China from 2006 to 2019 to build a continuous spatial difference in difference model (SDM-DID) to empirically study the spatial spillover effect of carbon trading market on regional emission reduction. The results are as follows: First, the implementation of the pilot policy of carbon emission trading has significantly promoted the carbon emission reduction in the pilot areas. From the perspective of impact mechanism, the implementation of carbon trading pilot policy promotes carbon emission reduction in pilot areas by promoting clean transformation of energy consumption structure, improving technology absorption capacity and stimulating development of low-carbon technologies. From the perspective of spatial spillover effect, China’s regional carbon emissions have significant spatial spillover effect, and carbon emissions trading has spatial spillover effect. From the perspective of spatial spillover, the carbon emission trading market promotes the carbon emission reduction in neighboring areas by promoting the clean transformation of energy structure in neighboring areas, improving technology absorption capacity and promoting technological progress.

A large-scale comparison of the meat quality characteristics of different chicken breeds in South China

Meat quality traits are essential for producing high-quality broilers, but the genetic improvement has been limited by the complexity of measurement methods and the numerous traits involved. To systematically understand the meat quality characteristics of different broiler breeds, this study collected data on slaughter performance, skin color, fat deposition, and meat quality traits of 434 broilers from 12 different breeds in South China. The results showed that there was no significant difference in the live weight and slaughter weight of various broiler breeds at their respective market ages. Commercial broiler breeds such as Xiaobai and Huangma chickens had higher breast muscle and leg muscle rates. The skin and abdominal fat of Huangma chickens cultivated in the consumer market in South China exhibited significantly higher levels of yellowness compared to other varieties. Concerning fat traits, we observed that Wenchang chickens exhibited a strong ability to fat deposition, while the younger breeds showed lower fat deposition. Additionally, there were significant positive correlations found among different traits, including traits related to weight, traits related to fat, and skin color of different parts. Hierarchical clustering analysis revealed that fast-growing and large broiler Xiaobai chickens formed a distinct cluster based on carcass characteristics, skin color, and meat quality traits. Principal component analysis (PCA) was used to extract multiple principal components as substitutes for complex meat quality indicators, establishing a chicken meat quality evaluation model to differentiate between different breeds of chickens. At the same time, we identified 46, 22, and 20 SNP loci and their adjacent genes that were significantly associated with muscle mass traits, fat deposition, and skin color through genome-wide association studies (GWAS). The above results are helpful for systematically understanding the differences and characteristics of meat quality traits among different breeds.

Role of Celebrity Endorsement in Luxury Brand Marketing: A Study of Consumer Preferences in China

Purpose: The aim of the study was to investigate the role of celebrity endorsement in luxury brand marketing: a study of consumer preferences in china Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on celebrity endorsements in luxury brand marketing in China revealed that celebrities significantly shape consumer preferences. Cultural relevance is crucial, as celebrities admired by Chinese consumers have a stronger impact. Aligning the celebrity's image with the brand's values enhances credibility. Authentic endorsements, perceived as genuine, are more effective. Overall, the study emphasizes the influential role of celebrities in shaping consumer perceptions of luxury brands in China. Unique Contribution to Theory, Practice and Policy: Social identity theory, self-congruity theory & information processing theory may be used to anchor future studies on the role of celebrity endorsement in luxury brand marketing: a study of consumer preferences in china. It emphasizes the need to tailor endorsement strategies to Chinese cultural values, prioritize authenticity, leverage social media platforms, and invest in long-term partnerships with celebrities. From a policy perspective, the study underscores the importance of transparency, ethical standards, and consumer protection in celebrity endorsement agreements within the Chinese market.

Wage Bargaining Power of Internal Migrant Workers: Evidence from Urban Labor Market in China

This study analyses the wage bargaining power of employers and internal migrant workers in the urban labor market in China using a two-tiered SFA model. The findings indicate that bargaining power decreases the observed wage relative to the benchmark wage which is associated with worker’s actual productivity. The availability of migrant labor is identified to be a key variable in the wage bargaining process. This study reveals that the migrant workers who obtain jobs via informal job search methods stand in a weak bargaining position relative to those using formal search methods which is consistent with limited choices hypothesis. Additionally, the migrant workers in the manufacturing and construction industries or producing and processing occupations extract surplus nearly identical to other groups.

Digital transformation, total factor productivity, and firm innovation investment

In the context of the digital economy, empowering firm innovation investment through digital transformation is an important strategy for promoting innovation development in China. This study investigates the effects and mechanisms of digital transformation on firm innovation investment from the perspective of total factor productivity, using a sample of manufacturing companies listed on the A-share market in China from 2012 to 2021. The following three main findings were obtained. First, results of both fixed- and random-effects regression methods revealed that digital transformation significantly promotes firms’ innovation investment. This conclusion remains robust after controlling for endogeneity issues using the instrumental variable method and replacing the explanatory variable measurement methods. Second, stepwise regression analysis revealed a negative mediating mechanism of total factor productivity (TFP) in the impact of digital transformation on the level of firm innovation investment. The main reason for this is that an improvement in TFP intensifies the competition for capital and labor input between the production and innovation departments. Third, the group regression for heterogeneity analysis found that the overall effect of digital transformation on firm innovation investment is significantly positive in groups with low financing constraints and high human capital, but not significant in groups with high financing constraints and low human capital. Moreover, the negative mediating mechanism of TFP is significantly valid in all groups, further validating the competition between the production and innovation departments for capital and labor input. Based on the findings of this study and from the perspective of governance by the Chinese government, three policy recommendations are proposed to empower firm innovation development through digital transformation.

Effect of digital transformation on labor income share in manufacturing enterprises: insights from technological innovation and industry–university–research collaborations

PurposeThis study investigates the relationships among digital transformation, technological innovation, industry–university–research collaborations and labor income share in manufacturing firms.Design/methodology/approachThe relationships are tested using an empirical method, constructing regression models, by collecting 1,240 manufacturing firms and 9,029 items listed on the A-share market in China from 2013 to 2020.FindingsThe results indicate that digital transformation has a positive effect on manufacturing companies’ labor income share. Technological innovation can mediate the effect of digital transformation on labor income share. Industry–university–research cooperation can positively moderate the promotion effect of digital transformation on labor income share but cannot moderate the mediating effect of technological innovation. Heterogeneity analysis also found that firms without service-based transformation and nonstate-owned firms are better able to increase their labor income share through digital transformation.Originality/valueThis study provides a new path to increase the labor income share of enterprises to achieve common prosperity, which is important for manufacturing enterprises to better transform and upgrade to achieve high-quality development.

Sustainable Development of the Rural Labor Market in China from the Perspective of Occupation Structure Transformation

This study analyzes the structural transformations of the occupations of all off-farm rural laborers in China over the period 2007–2022. The changes in the rural labor market are mainly reflected in the decrease in the share of routine manual laborers from 66.59 percent to 52.77 percent, and the increases in the shares of non-routine cognitive and non-working laborers by 4.48 and 10.73 percentage points from 2007 to 2022, respectively. By adopting decomposition analysis, which improves the definition of occupational classification based on information on sub-sectors in industries and job contents using a dataset with a nationally representative sample covering 2000 rural households, the results show that both composition effect and propensity effect play important roles in the decrease in routine manual occupations; the composition effect dominates the changes in the non-routine cognitive occupation category, while the propensity effect is the main driver of the increasing trend in the non-working group. The economic model further illustrates the results of decomposition analysis. These findings imply that the government should further improve education in rural areas and pay greater attention to female and low-education-attainment groups among rural laborers. This study provides a reference for policies aimed at promoting the sustainable development of the rural labor market.

Финансовые индикаторы динамики стоимости ESG-ориентированных компаний Китая

The priority of investing in sustainable development and ESG-oriented companies has become a global trend. Along with the developed markets of the USA and Europe, numerous ESG indices have been formed in countries of other continents. This segment of the stock market shows high growth rates in China. The purpose of the article is to identify the financial indicators that are most closely related to the value dynamics of ESG-oriented companies in China. The empirical base for the comparative analysis of companies adhering to ESG principles and not implementing them in practice was 48 companies included in the SSE 180 ESG Leaders Index of the Shanghai Stock Exchange, and 44 companies from the Shanghai Composite index that are not included in the ESG indices. The analysis of the value dynamics of the two groups of companies showed the higher resilience of ESG-oriented enterprises to the crisis phenomena in the economy. However, the comparative analysis of multipliers did not allow us to conclude that one of the groups of companies is more attractive for investment. Special attention was paid to the study of financial indicators of fundamental analysis. The main conclusion is important for investors: the growth in the value of ESG-neutral companies is not consistent with the positive dynamics of financial indicators, and such investments are riskier than investments in ESG-oriented companies. Further research on investment attractiveness of financial ESG-instruments and individual companies, adhering to the principles of sustainable development and represented in the stock market of China, will be associated with more detailed factor analysis, which is important for Russian investors to make informed decisions when developing a new capital market.

Seeing is believing: Performing transparency in the informal organic market in China

This article examines how intermediary organizations use both organizational and interpersonal scripts to perform face-to-face transparency in the informal organic market in China. These performances constitute a form of organizational relational work that has the following consequences: (1) framing the relationships between intermediary organizations and consumers as trustworthy by demonstrating the former's competence and honesty; (2) making consumers prioritize long-term trustworthy partnerships over the quality of a single product. The organizational relational work sustains transactions despite quality uncertainty. However, when this performative transparency is found by consumers not reflecting the actual production process, it spoils established trust. This case illustrates how organizational relational work stabilizes transactions amidst market uncertainty by building consumers’ trust in organizational-level institutions. It also highlights the role of dramaturgy in enabling organizational relational work.

Research on Renewable Energy Trading Strategies Based on Evolutionary Game Theory

The authors construct a tripartite evolutionary game model that considers renewable energy, traditional coal-fired power plants, and market users. We propose multiple income matrices under different strategies, conduct evolutionary stability analysis, and form a series of assumptions that meet the stability of the game. We also simulate and analyze the impact of key factors—such as assessment costs, different pricing behaviors of coal-fired power plants, electricity prices of renewable energy, and green electricity demand—on the stability of the game. In addition, the market equilibrium points that can be achieved by optimizing trading strategies and their optimization status in promoting renewable energy consumption are analyzed. Based on the operational characteristics of the Guangxi electricity market in China and the trading situation of renewable energy, an evolutionary game method is applied to conduct empirical research. The trading behavior and evolution of all parties in the market are fully analyzed and are then applied to the construction and mechanism improvement of the electricity market.

Using Artificial Intelligence Generated Content Technology to Promote High-Quality Development of Guangzhou’s Customized Home Furnishing Industry

AIGC (Artificial Intelligence Generated Content), or generative AI, utilizes deep learning and natural language processing, trained on vast datasets, to produce content that resembles human language. This represents a shift in content creation from human-driven to machine-driven, significantly enhancing content generation's efficiency and accuracy. With the AIGC market in China predicted to reach significant values by 2023 and 2028, Guangzhou, a hub for custom home furnishing with over half of the top companies, is undergoing a transformative upgrade. The integration of AIGC in this sector aligns with new trends, demands, and opportunities, providing strategic support for high-quality development.