We test the asset pricing implications of collateralized borrowing using the Chinese structured A-B funds. The funds are special in that the prices for the same asset with and without leverage are simultaneously observed with the leverage exogenously determined and time-varying. We find that...

China's economy is at a cross roads. The factors that have driven its economic transformation over the last decades are waning and the country faces increasingly urgent environmental and social pressures. To avoid falling into the 'middle-income' trap, China's leaders are attempting to engineer...