The asymmetric dissemination of information among financial firms in the financial market reflects their asymmetric response to the dissemination of both positive and negative information. However, it is worth studying whether this asymmetry will intensify or alleviate under different financial market conditions. Based on high-frequency minute stock price data of Chinese A-share listed financial firms from July 2020 to July 2023, we decompose the good and bad information, as well as the positive and negative volatility information in the return series. We utilize the quantile cross-spectral correlation method to construct an information overflow network at monthly intervals. We use the MVMQ-CAViaR model to estimate the value at risk (VaR) for various quantiles and build a risk spillover network that incorporates both positive and negative tail risk information, using the quantile dynamic SIM-COVAR-TENET model. We calculated the network dissemination efficiency of both good and bad information, including average speed, speed deviation, densest speed, and depth, to explore the changes in the asymmetry of good and bad information dissemination under different financial market conditions. We get that when the financial market is booming, financial firms’ asymmetric response to good and bad information will increase, and the firms will pay more attention to bad information. When the financial market declines, the asymmetric response of financial firms to good and bad information is diminished, and their sensitivity to both positive and negative information is heightened. In addition, the dissemination of bad information by firms in the five sub-financial industries across various markets exacerbates the asymmetric response of other financial firms to good and bad information. More importantly, the release of positive return information, negative volatility information, and highly negative tail risk information by the real estate financial firms all impact the asymmetric response of financial firms to good and bad information in a prosperous financial market. In recessionary financial markets, financial regulators can strategically release positive information to mitigate the decline in the financial market. Conversely, in a booming financial market, financial regulators should be cautious of the negative impact that bad information can have on financial firms, particularly in relation to the excessive growth of the real estate sector and the potential chain reaction of significant adverse events.

This study investigates the relationship between trade policy uncertainty (TPU) and market diversification with risk-averse firms. We build a model to demonstrate how a risk-averse firm diversifies risks stemming from escalating TPU through entering new markets whose trade policies are negatively correlated with ones in its already-entered markets. The positive effect of TPU on market diversification is moderated if the firm has lower risk hedging ability and/or is less risk-averse. Conditional on the TPU in the already-entered markets, there is an inverted-U relationship between TPU in the new market and the probability of entering it. Using a unique firm-product-level dataset on Chinese exporters, we find robust evidence supporting our theoretical predictions.

双循环发展格局的提出是我国应对当前经济形势变化、推动经济实现高质量发展的重要战略之举,这需要我国企业在以国内大循环为主体的新发展格局中探寻发展机遇。文章利用改进的市场潜力反映国内大市场的需求优势,进而基于中国工业企业数据库、中国工业企业专利数据库和中国地级及以上城市面板数据的匹配数据,探讨在新发展格局背景下,国内大市场优势对企业自主创新的影响效应。结果显示,国内大市场优势可通过降低企业平均成本、促进产业链技术外溢和提升中间品共享效应等渠道显著提升企业自主创新水平,该结论在使用城市地理信息数据和我国清代各州、府、县衙门数据进行内生性分析、考虑样本极端值及更换核心变量后的估计中依然成立。进一步分析发现,国际市场强化了国内大市场优势对企业创新的提升作用,现阶段国内、国际市场之间呈现出明显的互动趋势。国内、国际市场对企业创新的协同影响效应因企业所在行业类型、企业贸易类型、内外资类型及专利类型而具有较大差异。文章结论对于中国企业依托国内统一大市场优势构建自主可控的创新体系,进而提升企业创新水平和国际竞争力方面具有重要的现实意义。

Using data from Chinese A-share listed companies from 2010 to 2021, we examined the impact of ESG rating disagreement on stock price synchronicity and its mechanisms. We discovered that ESG rating disagreement increases stock price synchronicity by raising investors' information costs and reducing the efficiency of ESG information incorporation into prices. This effect is more pronounced when average ESG ratings are either low or high. Our findings highlight how ESG rating disagreement affects stock price synchronicity and provide insights for regulators to standardize rating criteria and foster a conducive ESG investment environment, promoting pricing efficiency in the capital markets.

Although China has made great economic achievements, it is still an emerging market, and the financial market systems are different from those of developed countries. As such, the market phenomenon presented in mature financial markets may be different from that in the Chinese stock market. This paper reveals that the impact of volume on anomalous returns in the Chinese stock market shows different effects on overvalued stocks and undervalued stocks, while volume in the mature US financial market shows the classic theory of volume amplifying the effect of anomalous returns (Han et al. 2021). What causes this? Our research indicates that the relationship between volume and future stock returns in China differs from that in US due to the stringent short-selling restrictions imposed in China. In China, strong short-selling restrictions are in place, a decrease in volume has a significantly negative relationship with future returns for both overvalued (t-value = 6.50) and undervalued (t-value = 2.45) stocks. Furthermore, we demonstrate that the underlying mechanism in the effects of volume on the future returns of overpriced and underpriced stocks are distinct.

Lithium demand in China has grown rapidly with the popularization of 3C electronics, electric vehicles, and other products. As an important part of the global processing of lithium products, China still relies on importing a vast majority of raw lithium materials, which significantly affects the supply security of China's lithium market. Therefore, this study used material flow analysis to analyze the supply and demand characteristics of China's lithium trading market from the trade material flow and industrial material flow. The results showed that that the import of lithium resources in China is mainly concentrated on lithium carbonate, which is the raw material for power batteries, and the import of lithium accounts for 72.5% of the consumption in China. With the increasing demand for lithium in China, secondary lithium recovered from end-of-life (EoL) batteries is expected to become an important lithium source.

This study focuses on the relationship between individual stocks’ systemic tail risk and future returns. Analyzing data from China's A-share market, we document an abnormal negative crosssectional relationship between stocks’ systemic tail risk and returns, which cannot be explained by firm-specific characteristics. We show that the joint effect of investor expectation of stock return persistence and investor sentiment contributes to the systemic tail risk anomaly. Investors tend to underestimate the loss persistence of stocks that have suffered large losses in the most recent period and overprice such stocks, leading to a strong negative relationship between stock systemic tail risk and return. In addition, constraints on short selling exacerbate individual stocks’ systemic tail risk and also explain the systemic tail risk anomaly.

This paper selects 346 green bonds issued in China from 2016 to 2021 as the sample, and the Propensity Score Matching (PSM) method is employed to confirm the existence of ‘green premium’ in the Chinese bond market. On this basis, data on internet media sentiment and print media sentiment are collected from ‘Sina Weibo’ and ‘China Important Newspaper Full Text Database’ by both Web Crawler Technology and Textual Analysis Methods to explore the impact and the mechanism of heterogeneous media sentiments on the ‘green premium’. The results show that both the optimism of internet media and print media can significantly promote the ‘green premium’ of green bonds, and the influence of print media sentiment on the ‘green premium’ is greater than that of internet media sentiment. In addition, the Bootstrap method verifies the mediating effect of print media sentiment in the influence of internet media sentiment on ‘green premium’, indicating that print media sentiment is an important transmission path. Moreover, the results of the heterogeneity test show that the more optimistic the media is, the more significant the ‘green premium’ effect is in the regions with higher institutional environments and financial subsidy policies. The ‘green premium’ of green bonds is most pronounced for higher levels of institutional environment and green bond preferential policies.

This paper investigates how domestic policy uncertainty stemming from discretionary fiscal policy disrupts the efficient capital allocation across firms. While fiscal policy represents the government’s reaction to economic conditions, its volatility presents firms with considerable uncertainty about conditions affecting their future profitability and consequently disrupts firms’ decisions on investment in the presence of capital adjustment costs. Using firm-level data from Chinese manufacturing industries spanning from 1998 to 2007, we find that reducing fiscal policy volatility leads to a decrease in the dispersion of marginal revenue product of capital, accounting for 8.9 percent of the observed improvement in capital allocation during the sample period. In addition to various fiscal reforms to curb fiscal policy volatility directly, policies contributing to lower capital adjustment costs and lower reliance of firms on government expenditure can alleviate the adverse effects caused by fiscal policy volatility.

This paper provides the first theory and evidence on the role of presale policies in the residential housing market. We start with constructing a novel dataset of unfinished projects, presale policies, and land auction outcomes across 270 major cities in China. We then identify 2,330 unfinished residential projects from 2010 to 2017 on a citizen complaint website run by the central government. We find that both presale criterion and postsale supervision of construction costs relate to a lower probability of unfinished projects. But only presale criterion relates negatively to the pace of new housing development, measured by developers' multitasking and land auction outcomes. A back-of-the-envelope calculation suggests that the average bundle of presale policies is inferior to the Pareto frontier in our sampled cities. Tightening the regulation on postsale supervision by 2 standard deviations may lead to a 58% reduction in the occurrence of unfinished projects, while keeping the pace of new housing development unchanged. Eliminating unfinished projects would entail a drastic increase in both presale criterion and postsale supervision, with slower housing development.