nep-cna New Economics Papers
on China
Issue of 2017‒08‒06
two papers chosen by
Zheng Fang
Ohio State University

  1. The Nexus between Visitor Arrivals and Residential Property Rents in Hong Kong By Chong, Terence Tai Leung; Yiu, Alex Wing-Ho
  2. The Roadmap of Interest Rate Liberalization in China By Chong, Terence Tai Leung; Liu, Wenqi

  1. By: Chong, Terence Tai Leung; Yiu, Alex Wing-Ho
    Abstract: Cost of living in Hong Kong is among the highest in the world. This paper investigates the effect of tourist arrivals on the residential property market in Hong Kong. It is demonstrated that the soaring number of tourists from mainland China is pushing up property rents in Hong Kong. The substantial accommodation need generated by the increasing number of students from China is another contributing factor.
    Keywords: Residential property rent; Retail property rent; Instrumental variable
    JEL: R2 R21 R23
    Date: 2017–07–01
  2. By: Chong, Terence Tai Leung; Liu, Wenqi
    Abstract: This paper examines the roadmap of interest rate liberalization in China, including the current dual-track interest rate system and the future benchmark rate system. It provides a theoretical foundation for China to develop its own benchmark interest rate. A Vector autoregression model (VAR) is estimated to investigate the effectiveness of Chinese market interest rates, Shanghai Interbank Offered Rate (SHIBOR), and repo rates against different factors such as market size, volatility, transmission channels of monetary policy, and term structures of interest rates. The result shows that SHIBOR affects both the market and the economy. As SHIBOR promptly reflects the changes in currency markets, we argue that it has the potential to become China’s benchmark interest rate.
    Keywords: SHIBOR, interest rate liberalization, shadow banking.
    JEL: G21
    Date: 2016–04–13

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