Abstract:Sustaining high saving rate and high investment rate may be the most two intricate phenomena in the course of high-speed Chinese economic growth. By constructing a growth model in which labour transition play pivotal role, and then testing it by a vector auto-regression model VAR, we shows that the transition of actually unemployed labour from agriculture to industury industrialization, from rural area to city urbanization, from state-owend enterprise to private sector marketization, has contributed substantially to Chinese growth. As to high saving rate and high investment rate, they are just the natural results of labour transition and also the impetus by which the transition can be sustained. But if we consider inefficient domestic financial sector, the transformation of saving to investment and also labour transition may be terminated. Therefor, international exchange of risk between demestic and foreign financial sectors, i.e. the former exporting safe capital by holding official foreign exchange reserves while importing risky capital through direct foreign investment, is the key to economic growth.

Abstract:Compared with consciously-designed transitional pattern in Middle and East Europe countries, China economic transitional practice stemmed from how to solve peoples living better. This reason became a clue to promote and appraise transitional performance from beginning to end. As transitional practice proving so far, transition is a gradually forming process of institution definitely, and there has no linear relationship among transitional process, performance, and anticipated object. Aiming at China successful transitional practice, the thesis tries to explain certain reasonable logic through the index introduction, such as performance principle, adaptive ability, creative competence, and etc. Significance of the action lies in that from China successful practice concludes analytical general method, and a kind of systemic expatiation on “Beijing Consensus” as well.

Abstract:In recent years, the research on both the symmetry and asymmetry of the effect of monetary policy has raised great concern abroad in the domain of finance. Evidence from research shows that the effects of contractionary and expansionary monetary policy differ from each other significantly when coping with the overheated and recessionary economy, respectively; besides, the distinctions of the effects and features of the monetary policies that are used in different countries and regions are also obvious. Through the flexible approach of Hamilton 2001, Kim D.H. 2002 analyses the monetary policy of U.S. The result indicated the significant nonlinearity of the American monetary policy before 1979, that is, asymmetric effect, while there is little such evidence for the subsequent period. By contrast, opposite results have been found by Bruinshoofd and Candelon2004, test the effectiveness of monetary policy in some European countries using STR model and LM statistics. So far, few evidence shows whether the effect of monetary policy in China symmetric or not. This paper gives a thorough discussion on the issue using LSTR model and LM test statistics. The result indicates our monetary policy has a distinct asymmetry and a strong nonlinearity in its effect from the first quarter of 1993 to the second quarter of 2004.

Abstract:The international monetary system has entered an era of multi reserve currencies since the collapse of Bretton Woods. The best reason why so many currencies went internationalized seems to be all the possible benefits the issuer of the international currencies should have gained. Apart from the immeasurable benefits like power to speak in the international financial forums, benefits of currency internationalization include international seigniorage revenue and financial profits from operating the offshore reserves of the currency. By rough estimates, the measurable benefits of US Dollars internationalization have reached 953 billion dollars by the end of 2002. Besides, if Renminbi could realize regional internationalization by 2010, it is believed that China would have gained about 750 billion yuan in the coming ten years.

Abstract:The theory of the stock intrinsic value is very important to the investor and decision-maker. To estimate the intrinsic value accurately is the only way which the investor and decision-maker treat the stock bubble problem rightly . So the paper discusses the intrinsic value and the stock bubble .Firstly, the paper surveys the theory of the stock intrinsic value . Secondly, the paper modifies the Feltham-Olson model, and make it more applicable. Thirdly, it measures the bubble volume of Chinas stock market by the modified F-O model .We find that the absolute and relative scale of the bubble of Chinas stock market have dropped sharply in the previous three and half years. At the end ,the author gives some suggestions.

Abstract:This paper examines and makes a comparison between four earnings momentums that differ in the four measures of earnings, by sampling 338 A-shares listed on the Shanghai Stock Exchange in the period from September 2000 to December 2003. Using each measure of earnings, we find significant evidence of the earnings momentums. But after controlling for risk using the Fama-French three-factor model, the earning momentums that are based on “unexpected earnings ratio” and “standardized unexpected earnings ratio” disappear. However, the earnings momentums based on “unexpected earnings” and “standardized unexpected earnings” are still robust after the control for risk, which means the strategies that buy and sell stocks based on these two earnings measures can generate significantly positive abnormal returns. These empirical results constitute a rejection of the Risk Premium Hypothesis. The authors suggest that these results can be explained by “Framing Dependence Bias” of Tversky and Kahneman 1981. The Chinese investors reactions to the earnings information vary while different measures of earnings information are used, which results in the difference of four earnings momentums.

Abstract:We use experimental methods to conduct experimental capital markets under asymmetric information and address whether information can transfer immediately in markets. This paper documents the inefficiency of capital markets under asymmetric information. The paper also documents that the transfer of information and the response of prices through capital markets are conditional and time-consuming. The investors in capital markets are not fully rational, they are ordinary people, have cognitive and behavioral bias, they are prone to overconfidence and thus cause to over trade. Information asymmetries can cause the manipulation behavior of the insiders thus cause the formation of price bubbles.

Abstract:Trading through muti-securities accounts is an unique character of Chinas institutional investors. This paper provided an method to separate institutional investors data from trading data. We got the proof that institutional investors were to use related accounts to manipulate stock price by wash sales, improper matched orders, jumping and dumping, etc. According to the empirical results, we proposed the increasing application chance motivation for IPO of using muti- securities accounts other than the manipulation content. We then gave several advices to normalize the muti- securities accounts behavivor.

Abstract:Are there any relations between Chinese listed firms market value and their corporate governance How much a premium are Chinese investors willing to pay for well-governed firms Through a comprehensive and systematic empirical study on these two issues, this paper aims at understanding corporate governance practices among the Chinese listed firms and providing best corporate governance practices that fit Chinese firms well. In light of Chinas institutional background, we carefully examine various internal and external corporate governance mechanisms. We identify a set of eight variables that fully captures Chinese listed firms corporate governance practices. Applying the principal component analysis method PCA to these variables, we compile a single composite index G-Index to rank Chinese listed firms corporate governance levels. Our main empirical findings are: 1 firms with higher governance levels higher G-Index scores have higher market valuations; 2 investors in China are willing to pay a considerable amount of premium for well-governance firms.

Abstract:Based on the special institutional settings that there exists the regulation on managerial compensation in chinese SOEs, we examine the determinants of non-pecuniary compensation and the economic consequences of regulation on compensation. The empirical evidences show that non-pecuniary compensation is influenced by firm rents, absolute pay and firm size. Due to regulation on cash compensation in SOEs, non-pecuniary compensation is an alternative choice for managers. And, the regulated compensation contract lacks of economic efficiency.

Abstract:This paper aims at analyze the influence from local government to the local industrial structure, paying particular attention to manufacturing industry. Two kinds of approaches by which the Local government implements its influence are considered, one is to block the interregional trade by increasing the exchange cost, and another is to directly invest in local industries. A two-period model is presented to show the governments influence in the process of local industrial structure adjustment. Meanwhile, a dynamic model reveals what government behaviors can do about the steady-point industrial structure. The analysis outcomes are consistent. Increase in exchange cost can reduce the degree of regional specialization within the industries considered, while the direct investment by local governments has ambiguous effect, and it will enhance regional specialization in proper condition. Further, the data analysis demonstrates the theoretical conclusion. The trend analysis by computing SD and Krugmans Index shows that the national-wide average degree of regional specialization increases during the sample period. And by controlling the transportation cost, the difference of the resource endowments and the history factors, the results of econometric analysis the regressions show that the governments have significant effects on the regional specialization. The governments block the interregional trade by increasing the exchange cost, then lead to the convergence of the industry structure between provinces, while the government investments increase the difference of the industry structure as a whole.

Abstract:The paper discusses the basic analytical framework that is typically used to study particular economic issues and questions that economists are interested in. The analytical framework usually consists of five steps: 1 characterizing economic environments, 2 specifying behavior assumptions, 3 providing an institution arrangement, 4 choosing an equilibrium, and 5 making evaluations. The paper also discusses the basic analytical methods widely adopted in modern economics, such as providing various analytical platforms, establishing reference systems, giving measuring criterions, developing analytical tools, noticing the boundary and arrange of an theory, etc. Understanding the general analytical framework and methodologies can help to classify some misunderstandings about modern economics, and can also help to use the basic economics principle or develop new economic theories to solve economic problems under various economic environments, different human behavior and institution arrangements.