Working Papers

"Intenationalizing Like China," with Christopher Clayton, Matteo Maggiori and Jesse Schreger.  Revise and Resubmit, American Economic Review. February 2024.

• Non-Technical Brief

• NBER Working Paper with further results

Selected media coverage: Bloomberg | The Economist | Business Insider

We empirically characterize how China is internationalizing its bond market by staggering the entry of different types of foreign investors into its domestic market and propose a dynamic reputation model to explain this strategy. Our framework rationalizes China’s strategy as trying to build credibility as a safe issuer while reducing the cost of capital flight. We use our framework to shed light on China's response to episodes of capital outflows. 

Publications

"China in Tax Havens," with Christopher Clayton, Antonio Coppola, Matteo Maggiori and Jesse Schreger.  AEA Paper and Proceedings. May 2023.

• Related Non-Technical Brief

• Data and Code

Selected media coverage: New York Times | Bloomberg

We document the rise of China in offshore capital markets. Chinese firms use global tax havens to access foreign capital both in equity and bond markets. In the last twenty years, China’s presence went from raising a negligible amount of capital in these markets to accounting for more than half of equity issuance and around a fifth of global corporate bonds outstanding in tax havens. Using rich micro data, we show that a range of Chinese firms, including both tech giants and SOEs, use these offshore centers. We conclude by discussing the macroeconomic and financial stability implications of these patterns.