Introduction to the experiences and challenges in the development of the Chinese capital market / Douglas Cumming, Alessandra Guariglia, Wenxuan Hou, and Edward Lee -- Information asymmetry and the diversification discount : evidence from listed firms in China / Michael Firth, Man Jin and...

We study how perceived government support for state-owned enterprises (SOEs), can shut out non-SOEs in China's credit market, causing severe segmentation in credit pricing. Since 2018Q2, amid government-led credit tightening, the SOE premium – the difference in credit spreads between non-SOE...

Studying China's credit market, we find improved price efficiency and, paradoxically, worsening segmentation as perceived government support for state-owned enterprises (SOEs) caused non-SOE credit spreads to explode rather dramatically relative to their SOE counterparts of same credit rating,...