Although it had a a lower income level than India in 1980, China's 2006 per capita gross domestic product stands more than twice that of India's. This paper investigates the role of the business environment in explaining China's productivity advantage using recent firm-level survey data. The...

We perform transaction-level analyses of entrusted loans—one of the largest components of shadow banking in China. Entrusted loans involve firms with privileged access to cheap capital channeling funds to less privileged firms, and increase when credit is tight. Nonaffiliated loans have much...

We examine various aspects of the IPO market in China—the policy history, IPO pricing, bids and allocation, and aftermarket trading under two lenses: IPO theories and the unique regulatory environment in China. We show that heavy-handed regulations cause inefficient IPO offer prices and high...