Saving Chinaís Stock Market
Yi Huang Jianjun Miao Pengfei Wang
Abstract
What are the economic beneÖts and costs of preventing a stock market meltdown during the summer of 2015 by the Chinese government intervention? We answer this question by estimating the value creation for the stocks purchased by the government between the period starting with the market crash in mid-June and the market recovery in September. We Önd that the government intervention increased the value of the rescued Örms with a net beneÖt between RMB 2,464 and 3,402 billion, which is about 5% of the Chinese GDP in 2014. The value creation came from the increased stock demand by the government, the reduced default probabilities, and the increased liquidity.
链接：http://people.bu.edu/miaoj/ChinaStockMarketAllfiles.pdf
