The 22th Academic Luncheon of the Digital Technology and Finance

Abstract：

As a pillar industry of the national economy, real estate is crucial to the overall development and safety and supports the high-quality development of China's economy. By manually matching the data of offshore dollar bond issuance and domestic operating data of listed real estate enterprises in China, this paper discusses the motives and economic consequences of Chinese real estate enterprises' offshore financing. Taking the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (hereinafter referred to as the New Asset Management Regulations) issued at the end of 2017 as an exogenous policy shock, this paper constructs a loan-weighted shadow banking exposure indicator from the perspective of bank-enterprise relationship. Both the results of difference-in-differences and instrumental variables show that after the impact of the New Asset Management Regulations, real estate enterprises closely related to banks with a large scale of shadow banking business have issued a larger scale of dollar bonds, supporting the regulatory avoidance motive of real estate enterprises in issuing dollar bonds offshore. Further analysis shows that although offshore financing under this motive alleviates the liquidity pressure faced by real estate enterprises, it also leads to consequences such as decreased land investment efficiency and increased operating risks for real estate enterprises. The research conclusions of this paper have important implications for maintaining the stable operation of the real estate market, accelerating the construction of a new model for real estate development, and escorting the high-quality development of China's economy.

Speaker Introduction：

Zhao Li is an associate professor at the School of Finance, Zhongnan University of Economics and Law. His main research directions are banking theory and financial supervision, and his achievements have been published in journals such as Management Science and Journal of Economic Dynamics and Control. He is currently presiding over a general project (ongoing) and a youth project (excellent in conclusion) funded by the National Natural Science Foundation of China. Li Zhao obtained a double bachelor's degree in economics and mathematics from Wuhan University, a master's degree in finance and economics from Wuhan University and Toulouse School of Economics in France, and a doctor's degree in finance from Universitat Pompeu Fabra in Spain.