In this paper, we examine how the enforcement and collapse of a rumor affect regional housing markets in China. Specifically, we trace the rumor that Yanjiao and Dachang, two counties in Hebei province, were to be merged into Tongzhou, a county of Beijing, and quantify the bust of housing prices...

Real estate bubbles can increase collateral value, thus relaxing financial constraints, which might spur innovation. However, they might also crowd out R&D expenditures, thus stifling corporate innovation. This paper shows that real estate prices negatively affect both corporate R&D and patents...

Housing is by far the most important asset in households’ balance sheets across many countries including China, and the policy relevance of the housing sector has been increasingly recognized (as evident by the inclusion of the housing cost into ECB’s inflation measure proposed in its new...

Housing is by far the most important asset in Chinese households' balance sheets. However, despite forceful and frequent government interventions, the rise in Chinese housing prices has not been contained as much as intended, a trend that has not been reversed by the COVID-19 shock. In this...

We introduce a novel quantitative methodology to detect real estate bubbles and forecast their critical end time, which we apply to the housing markets of China's major cities. Building on the Log-Periodic Power Law Singular (LPPLS) model of self-reinforcing feedback loops, we use the quantile...

We examine the roles of bank ownership and CEO political faction membership in facilitating or hindering the implementation of central bank policy in China. Specifically, we examine the response of China’s commercial banks to People’s Bank of China (PBC) guidelines intended to decrease...

The significant economic development of China in recent years has seen a major contribution by both the direct and indirect real estate markets in China to this enhanced international economic status, with potential investment opportunities for international real estate investors in both of...

This paper explores the imbalance between China's real estate market, which is booming, and the stock market, which has plunged over four years. Our empirical analysis shows that the two markets are systematically negatively related due to fund flows. The plummeting stock indexes are partly...

Online businesses have been surging worldwide during the past decade, especially during the recent COVID-19 epidemic. However, the market share of online real estate transactions is still limited, mainly due to the information-asymmetry problem. In this study, we manually collect data on online...

Chengtou bond is the only asset with market prices that can capture the funding cost of Chinese local government debt. In contrast to the U.S. municipal bonds, Chengtou bonds are issued by private corporations but implicitly guaranteed by local and the central governments, which are reflected by...