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Effects of China's Capital Controls on Individual Asset Categories

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  • Shigeto Kitano

    (Research Institute for Economics and Business Administration, Kobe University, JAPAN)

  • Yang Zhou

    (Graduate School of Economics, Kobe University, JAPAN)

Abstract

We empirically assess the effects of China's capital controls on individual asset categories by using the local projection method. Our results show stark differences among individual asset categories. Capital controls on equity and financial credits affect the corresponding net inflows significantly, whereas those on the other three asset categories (bonds, commercial credits, and direct investment) do not.

Suggested Citation

  • Shigeto Kitano & Yang Zhou, 2021. "Effects of China's Capital Controls on Individual Asset Categories," Discussion Paper Series DP2021-25, Research Institute for Economics & Business Administration, Kobe University, revised May 2022.
    • Handle: RePEc:kob:dpaper:dp2021-25
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    Cited by:

    1. Liu, Qi & Wu, Jiejie, 2023. "Strong financial regulation and corporate risk-taking: Evidence from a natural experiment in China," Finance Research Letters, Elsevier, vol. 54(C).

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    More about this item

    Keywords

    Capital controls; China; Local projection;
    All these keywords.

    JEL classification:

    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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