Abstract：Based on the expanding framework of growth accounting, this study probes into the structural features of China’s economic transition and the conclusions are as follows: (1) There are six characteristics leading China’s economic growth slowdown in the future i.e. the demographic transition, the productivity redistribution among industries, the adjustment of income distribution, the accelerating of urbanization process, the declining of capital efficiency, and the narrow room for TFP improvement. (2) There are four kinds of risk in the course of China’s economic transition i.e. the readjustment of income distribution results in economic slowdown quickly, so does the risks such as undue ineffective investment, the high economic lever ratio, and the service-trend of industrial structure. (3) In order to deal with the risks of slowdown, economic policies should focus on the capital efficiency promoting. So, the basic conclusion is introducing market clearing to keep up economic growing stably.
Key Words：Structural Features; Transformation Risks; Convergent Consistency; Market Efficiency

Abstract：This article analyzes and expounds the current reform in statistical system and methods in priority areas of China’s government statistics, including reform in estimation method of owneroccupied dwelling service and R&D, introducing estimation of households actual final consumption in GDP estimation, reform in statistical system and methods of investment in fixed assets and service industries, and reform in the integration of household survey in rural and urban areas. This article sets out the reasons, the measures and the effects of the reform.
Key Words：GDP; Investment in Fixed Assets; Service Industries; Household Survey; Statistical Reform

Abstract：Under the deepening of financial liberation and global integration, the relationship between domestic capital markets and foreign exchange markets is far close ever. Based on investors’ heterogeneity, we take foreign intervention into consideration and analyze the relationship and mechanism between exchange rate and stock prices. We use SV-TVP-SVAR model and the data after exchange rate reform in 2005 to investigate the relationship between RMB exchange rate and China’s stock price empirically. The results show that the relationship between exchange rate and stock prices is time-varying: before 2009, there exists significant coupling effects, which means that the appreciation of the RMB goes with the rising of stock prices, but after that, the content of coupling effects changed-the appreciation of the RMB goes with the declining of stock prices. At different time points, we found asymmetric relationship between the volatility of exchange rate and stock prices. Except that, foreign intervention is efficient and make the exchange rate stable, and push the stock price up simultaneously.
Key Words：Exchange Rate; Stock Price; Foreign Intervention; Time Varying Parameter; SV-TVP-SVAR

Abstract：Being regarded as a market intervention，the bail-out behavior of the central bank after crisis has been criticized for years. It leads to drastic moral hazard situations and is pointed to be the main reason for the internal governance inefficiency in China’s commercial banks. However，under strict regulation，previous financial crisis and post-crisis reactions did not draw enough attention and emphasis in China until the financial crisis in 2008. When the banking system encountered a serious systemic crisis，the Deposit Insurance System（DIS）has received significant attention as an important solution. By employing the principalagent model，this paper provides a comparison，in the perspective of commercial banks’ internal governance，between an implicit fully secured arrangement and an explicit deposit insurance system. We point out that the DIS has two major advantages over the direct Bail-out system: first，the DIS can reduce the regulatory uncertainty faced by the central bank，and provide a way to evaluate the regulation consequence；second，the DIS can internalize the cost of risk exposure，which reduces the possibility of moral hazard.
Key Words：Systematic Risk；Internal Governance;Deposit Insurance System

Abstract：This paper decomposes family control into pyramidal structure and excess board control. Using a sample of family firms of 2003—2010, we provide empirical evidence on how law efficiency and financial deepening affect family control rights preferences. We find that law efficiency and financial deepening are negatively and significantly associated with the controlling family’s (1) wedge between control rights and cash flow rights and (2) excess board control. Our results show that law efficiency and financial deepening affect family control rights preferences by reducing the family’s incentives to gain private benefits of family control and to mitigate financial constraints respectively. The results suggest that the family control structure in the economic transition is a rational response to the economic institutions.
Key Words：Law Efficiency; Financial Deepening; Family Firm; Control Rights Structure

Abstract：Existing literatures on capital market efficiency ignored the impact of firm’s information providers on the improvement of market efficiency. This paper, from the perspective of the duality of CFO and board secretary of China’s listed companies, investigates the impact. We find that the China’s listed companies with the duality have higher value relevance of earnings, less post earnings announcement drift, and no further evidences to be found of mispricing of the earnings and its components(accrual anomalies). This result shows that the duality can disseminate information effectively and hence improve market efficiency. We first examine the impact of firm’s information providers on the improvement of market efficiency, and provide the empirical evidence on the institutional arrangement of the duality of CFO and board secretary of China’s listed companies.
Key Words：Information Provider; Market Efficiency; CFO; Board Secretary

Abstract：How to price the illiquid shares is the key method to explore the efficiency of Chinese stock markets. The illiquid shares in China were transferred with a much higher price discounts compared with those in foreign markets. Except for the risk under-diversification caused by trading restrictions, the paper proposes that Knightian uncertainty raised by long term opaque or asymmetric information is the main reason for the high price discounts. Theoretical analyses show that Knightian uncertainty increases the price discounts of illiquid assets, and the discount effects are magnified by the trading restriction time. This is because Knightian uncertainty has firstorder and cumulative effect on the optimal investment and consumption strategy, and can’t be hedged out using other assets. The empirical results support those theoretical predictions and remain significant after controlling for alterative explanations. The paper also finds that speculations and price bubbles in stock markets can explain the price discount of illiquid shares, but the traditional risk measure — volatility — can’t.
Key Words：Knightian Uncertainty; Trading Restrictions; Illiquid Asset; Asset Pricing

Abstract:In recent years, Chinese enterprises are frequently blamed by producing fake or low-quality goods, according to numerous media exposures. Even worse, whatever the size of the firms, they are herding to the similar ill conduct, resulting in a disaster of product insecurity. This is also an important moral issue on enterprise growth. Facing the explosive immoral act in the whole industry, the government usually enacts weak or powerless rules of regulation, which in turn worsen the problem. This paper, by building upon a mixed oligopoly model, formally analyzes the relationship among the fierce market competition, the explosive immoral act and the inefficient government regulation. In particular, we focus our analysis on the optimal strategy choice of the firms by allowing them to opt for immoral act or innovative technology to cut their production costs. At the end, we characterize the specific condition under which different types of subgame perfect equilibrium (e.g., the explosive immoral act) occurs.
Key Words：Explosive Immoral Act; Mixed Oligopoly Model; Government Regulation

Abstract：The paper studies two or three phases dynamic game change process of providing two spillover public goods at the same time and sequentially by constructing a non-cooperative game equilibrium model between two regions. This paper also studies the relation of direct contributions and matching rate on the basis of this model. Research finds that the result of committing direct contributions and matching rate by two areas at the same time is the Pareto optimality. The model result of one area committing matching rate is uncertain, and the welfare of committing area would improve in contrast with committing direct contributions and matching rate by two areas. Total quantity of two spillover public goods by providing sequentially is lower than total quantity of providing at the same time. Two spillover public goods has relation in supplying character, and the matching rate has no significant role of supplying character. Hereby, some recommendations are proposed for how to provide spillover public goods between some areas.
Key Words：Spillover Public Goods; Direct Providing Commitment; Matching Rate

Abstract：Considering the characteristics of different importing regimes, indirect importing and capital goods importing, our estimating results show that: the DVAR of China’s exports has risen from 0.49 in 2000 up to 0.57 in 2006; the DVAR of processing trade is significantly lower than that of ordinary trade, foreign firms’ DVAR is obvious lower than domestic firms’; the main drive for the increasing of DVAR in China’s exports is the private firms and foreign firms engaged in processing trade. Further analysis shows that FDI entry is an important factor that leads to the rise of DVAR of processing trade and foreign firms. This result shows that China may have not obtained real trade gains from the international trade. We also find exporting to developing countries and emerging economies is beneficial for the enhancement of DVAR. The empirical result can help disentangle the endless debate on China’s trade benefit and policy.
Key Words：Domestic Value Added Ratio (DVAR); Processing Trade; Foreign Firms; Foreign Direct Investment