Investment And Saving In China

Author : Ms.Longmei Zhang,Mr.Ray Brooks,Ding Ding,Haiyan Ding,Hui He,Jing Lu,Rui Mano
Publisher : International Monetary Fund
Page : 38 pages
File Size : 46,7 Mb
Release : 2018-12-11
Category : Business & Economics
ISBN : 9781484388778

Get Book

China’s High Savings: Drivers, Prospects, and Policies by Ms.Longmei Zhang,Mr.Ray Brooks,Ding Ding,Haiyan Ding,Hui He,Jing Lu,Rui Mano Pdf

China’s high national savings rate—one of the highest in the world—is at the heart of its external/internal imbalances. High savings finance elevated investment when held domestically, or lead to large external imbalances when they flow abroad. Today, high savings mostly emanate from the household sector, resulting from demographic changes induced by the one-child policy and the transformation of the social safety net and job security that occured during the transition from planned to market economy. Housing reform and rising income inequality also contribute to higher savings. Moving forward, demographic changes will put downward pressure on savings. Policy efforts in strengthening the social safety net and reducing income inequality are also needed to reduce savings further and boost consumption.

Author : Louis Kuijs
Publisher : Unknown
Page : 28 pages
File Size : 43,5 Mb
Release : 2005
Category : Government spending policy
ISBN : UCSD:31822030947790

Get Book

Investment and Saving in China by Louis Kuijs Pdf

"The author analyzes sectoral patterns of investment and saving in China-over time and compared with other countries-to shed light on the factors driving high investment and on how saving is channeled into investment. The findings inform several policy debates. Key findings include: (1) investment by enterprises distinguishes China from other countries and explains most of the variation over time; (2) high household saving explains only a part of the large difference in national saving between China and other countries-the majority is explained by high saving of the government and enterprises (through retained earnings); and (3) only about one-third of enterprise investment is financed via the financial sector, a lower share than in the early 1990s. The author also explores explanations behind high saving of the government and enterprises ... " -- Cover verso.

Author : Mr.Hui Tong,Mr.Tamim Bayoumi,Shang-Jin Wei
Publisher : International Monetary Fund
Page : 34 pages
File Size : 51,5 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 9781455210824

Get Book

The Chinese Corporate Savings Puzzle by Mr.Hui Tong,Mr.Tamim Bayoumi,Shang-Jin Wei Pdf

China’s high corporate savings rate is commonly claimed to be a key driver for the country’s large current account surplus. The mainstream explanation for high corporate savings is a combination of windfall profits in state-owned firms, especially in resource sectors, and mis-governance of state-owned firms represented by their low dividend payout. The paper casts doubt on these views by comparing the savings of 1557 Chinese listed firms with those of 29330 listed firms from 51 other countries over 2002-07. First, Chinese firms do not have a significantly higher savings rate (as a share of total assets) than the global average because corporations in most countries have a high savings rate. The rising corporate savings rate is also consistent with a global trend. Second, there is no significant difference in the savings behavior and dividend patterns between Chinese majority state-owned and private listed firms, contrary to the received wisdom.

Author : Burton G. Malkiel,Patricia A. Taylor
Publisher : W. W. Norton & Company
Page : 321 pages
File Size : 47,8 Mb
Release : 2008-12-17
Category : Business & Economics
ISBN : 9780393333589

Get Book

From Wall Street to the Great Wall: How Investors Can Profit from China's Booming Economy by Burton G. Malkiel,Patricia A. Taylor Pdf

Longtime friend and advisor to ordinary investors Burton G. Malkiel, together with a carefully selected team of coauthors, now gives them an investment strategy for accessing the world's fastest-growing economy. Drawing from the author team's on-the-ground experience in China, From Wall Street to the Great Wall details how average investors can tap into the opportunities China affords. Inside, readers will find: A compact tour of five hundred years of Chinese history and culture that offers readers a footing in this unique investing environment, with special emphasis on the Mao years and the rise of the reformist government of Deng Xiaoping, A hype-free, in-depth investigation of the Chinese stock market, estimating its efficiency and highlighting the best bets among Chinese firms and industries, Substantial coverage of the multinational corporations in the United States and elsewhere that stand to benefit from China's explosive growth, Overviews of the markets for commodities, real estate, and art and collectibles, as Malkiel leaves no investment possibility unexamined, Four fully realized and detailed investment strategies for China, drawn from Malkiel's broad experience and proven investment track record. Book jacket.

Author : Mr.Marcos Chamon,Kai Liu,Mr.Eswar Prasad
Publisher : International Monetary Fund
Page : 36 pages
File Size : 40,7 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 9781455211708

Get Book

Income Uncertainty and Household Savings in China by Mr.Marcos Chamon,Kai Liu,Mr.Eswar Prasad Pdf

China’s household saving rate has increased markedly since the mid-1990s and the age-savings profile has become U-shaped. We find that rising income uncertainty and pension reforms help explain both of these phenomena. Using a panel of Chinese households covering the period 1989-2006, we document that strong average income growth has been accompanied by a substantial increase in income uncertainty. Interestingly, the permanent variance of household income remains stable while it is the transitory variance that rises sharply. A calibration of a buffer-stock savings model indicates that rising savings rates among younger households are consistent with rising income uncertainty and higher saving rates among older households are consistent with a decline in the pension replacement ratio for those retiring after 1997. We conclude that rising income uncertainty and pension reforms can account for over half of the increase in the urban household savings rate in China since the mid-1990s as well as the U-shaped age-profile of savings.

Author : James Riedel,Jing Jin,Jian Gao
Publisher : Princeton University Press
Page : 224 pages
File Size : 55,9 Mb
Release : 2023-06-06
Category : Business & Economics
ISBN : 9780691248066

Get Book

How China Grows by James Riedel,Jing Jin,Jian Gao Pdf

Why investment and financial reform are essential to China's continued economic well-being Although China's economy has grown spectacularly over the last twenty-five years, economists disagree about how the Chinese economy is likely to fare in the short- and long-term future. Is China's growth sustainable, or has China relied too much on investment, which is subject to diminishing returns, and not enough on technological change? The first book on the relation between investment, finance, and growth in China, How China Grows dismisses this concern. James Riedel, Jing Jin, and Jian Gao argue that investment has not only been the engine of growth, but also the main source of technological progress and structural change in China. What threatens future growth instead, the authors argue, are the weaknesses of China's financial system that undermine efficiency in investment allocation. Financial-sector reform and development are necessary, not only for sustaining long-term growth, but also for maintaining macroeconomic stability. Although it includes some technical economic analysis, How China Grows is accessible to noneconomists and will benefit anyone who is interested in development finance in general and in China's economic growth in particular—whether economists, political scientists, bankers, or business people.

Author : Anonim
Publisher : World Bank Publications
Page : 32 pages
File Size : 49,8 Mb
Release : 2024-06-12
Category : Electronic
ISBN : 8210379456XXX

Get Book

How will China's saving-investment balance evolve? by Anonim Pdf

Author : Mr.Anoop Singh,Mr.Malhar Nabar,Mr.Papa M N'Diaye
Publisher : International Monetary Fund
Page : 292 pages
File Size : 46,6 Mb
Release : 2013-11-07
Category : Business & Economics
ISBN : 9781484303931

Get Book

China's Economy in Transition by Mr.Anoop Singh,Mr.Malhar Nabar,Mr.Papa M N'Diaye Pdf

China's current account surplus has declined to around one-quarter the peak reached before the global financial crisis. While this is a major reduction in China's external imbalance, it has not been accompanied by a decisive shift toward consumption-based growth. Instead, the compression in its external surplus has been accomplished through increasing fixed investment so that it is now an even higher share of China's national economy. This increasing reliance on fixed investment as the main driver of China's growth raises questions about the durability of the compression in the external surplus and the sustainability of the current growth model that has had unprecedented success in lifting about 500 million people out of poverty over the last three decades. This volume examines various aspects of the rebalancing process underway in China, highlighting policy lessons for achieving stable, sustainable, and inclusive growth.

Author : Mr.Il Houng Lee,Mr.Murtaza H. Syed,Mr.Liu Xueyan
Publisher : International Monetary Fund
Page : 22 pages
File Size : 50,7 Mb
Release : 2012-11-27
Category : Business & Economics
ISBN : 9781475594713

Get Book

Is China Over-Investing and Does it Matter? by Mr.Il Houng Lee,Mr.Murtaza H. Syed,Mr.Liu Xueyan Pdf

Now close to 50 percent of GDP, this paper assesses the appropriateness of China’s current investment levels. It finds that China’s capital-to-output ratio is within the range of other emerging markets, but its economic growth rates stand out, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than suggested by cross-country panel estimation. This deviation has been accumulating over the last decade, and at nearly 10 percent of GDP is now larger and more persistent than experienced by other Asian economies leading up to the Asian crisis. However, because its investment is predominantly financed by domestic savings, a crisis appears unlikely when assessed against dependency on external funding. But this does not mean that the cost is absent. Rather, it is distributed to other sectors of the economy through a hidden transfer of resources, estimated at an average of 4 percent of GDP per year.

Author : Mr.Malhar Nabar
Publisher : International Monetary Fund
Page : 30 pages
File Size : 45,5 Mb
Release : 2011-10-01
Category : Business & Economics
ISBN : 9781463904258

Get Book

Targets, Interest Rates, and Household Saving in Urban China by Mr.Malhar Nabar Pdf

This paper studies a panel of China's provinces over the period 1996-2009 during which urban household saving rates increased from 19 percent of disposable income to 30 percent. It finds that the increase in urban saving rates is negatively associated with the decline in real interest rates over this period. This negative association suggests that Chinese households save with a target level of saving in mind. When the return to saving declines (increases), it becomes more difficult (easier) to meet a target and households increase (lower) their saving out of current disposable income to compensate. The results are robust across specifications and to the inclusion of additional variables. A main policy implication is that an increase in real deposit rates may help lower household saving and boost domestic consumption.

Author : Marcos Chamon
Publisher : Unknown
Page : 39 pages
File Size : 50,9 Mb
Release : 2015
Category : Electronic
ISBN : OCLC:1308740779

Get Book

Income Uncertainty and Household Savings in China by Marcos Chamon Pdf

China's household saving rate has increased markedly since the mid-1990s and the age-savings profile has become U-shaped during the 2000s. We find that rising income uncertainty and pension reforms help explain both of these phenomena. Using a panel of Chinese households covering the period 1989-2006, we document that strong average income growth has been accompanied by a substantial increase in income uncertainty. Interestingly, the permanent variance of household income remains stable while it is the transitory variance that rises sharply. A calibration of a buffer-stock savings model indicates that rising savings rates among younger households are consistent with rising income uncertainty and higher saving rates among older households are consistent with a decline in the pension replacement ratio for those retiring after 1997. We conclude that rising income uncertainty and pension reforms can account for over half of the increase in the urban household savings rate in China since the mid-1990s as well as the U-shaped age-saving profile.

Author : Joseph P. H. Fan,Randall Morck
Publisher : University of Chicago Press
Page : 401 pages
File Size : 53,6 Mb
Release : 2012-11-23
Category : Business & Economics
ISBN : 9780226237268

Get Book

Capitalizing China by Joseph P. H. Fan,Randall Morck Pdf

China’s economic boom over the last two decades has taken many analysts by surprise, given the ongoing role of central government planning. Its current growth trajectory suggests that the size of its economy could soon surpass that of the United States. Some argue that continued growth and the expanding middle class will ultimately exert pressure on the government to bring about greater openness of the financial market. To better understand China’s recent economic performance, this volume examines the distinctive system it has developed: “market socialism with Chinese characteristics.” While its formal institutional makeup resembles that of a free-market economy, many of its practices remain socialist, including strategically placed state-owned enterprises that wield influence both directly and through controlled business groups, and Communist Party cells whose purpose is to maintain control of many segments of the economy. China’s economic system, the contributors find, also retains many historical characteristics that play a central role in managing the economy. These and other issues are examined in chapters on China’s financial regulations, corporate governance codes, bankruptcy laws, taxation, and disclosure rules.

Author : International Monetary Fund
Publisher : INTERNATIONAL MONETARY FUND
Page : 94 pages
File Size : 41,9 Mb
Release : 1988-03-18
Category : Business & Economics
ISBN : IND:30000054082874

Get Book

Urban and Rural Household Savings in China by International Monetary Fund Pdf

Household savings behavior in China during the past 30 years has been studied by using econometric models with the time-varying-parameter technique. The rural sector and the urban sector are investigated separately. In comparison to previous studies on the same subject, the estimated models of the current study are more robust, and the results of the models are much more in line with results of similar studies of other countries.

Author : World Bank
Publisher : Unknown
Page : 492 pages
File Size : 54,5 Mb
Release : 1988
Category : Business & Economics
ISBN : STANFORD:36105038460734

Get Book

China by World Bank Pdf

The Chinese Government set in motion in 1979 a series of economic reform measures aimed at decentralizing production and investment decisions and subjecting them increasingly to market influences. This report discusses the progress of these reform measures and their impacts thus far on the processes and institutions of savings mobilization, financial intermediation and investment. It attempts to clarify the issues and interrelationships of the various reform measures that may be needed to achieve the reform's objectives.

Author : Jahangir Aziz,Li Cui
Publisher : International Monetary Fund
Page : 40 pages
File Size : 43,6 Mb
Release : 2007-07
Category : Business & Economics
ISBN : UCSD:31822034969576

Get Book

Explaining China's Low Consumption: The Neglected Role of Household Income by Jahangir Aziz,Li Cui Pdf

The Chinese government has recently focused on the need to increase consumption to rebalance the economy. A widely held view is that despite China's remarkably high growth, the share of consumption in total expenditure has been low and declining due to high and rising saving rate of Chinese households as uncertainty over provision of pensions, and healthcare and education costs have increased since the mid-1990s. This paper finds that the rise in saving rate has been a minor factor. Much larger has been the role of the declining share of household income in national income, which has occurred across-the-board in wages, investment income, and government transfers. The paper finds that financial sector weaknesses, by restricting firms' access to bank financing for working capital, have played quantitatively a major role in keeping wage and investment income shares low and on a declining trend.