The Impact of Chinese Exchange Rate Policy on the Rest of the World: Evidence from Firm-Level Data

This paper aims to gauge the global effect of renminbi revaluation on stock markets. Using data on 12,300 firms in operating in tradable sectors in 44 economies, we find that expectations of renminbi appreciation reduce the relative stock returns of firms providing components or raw materials to China as inputs for that country's exports. We also find some evidence that expectations of renminbi appreciation reduce the stock prices of financially constrained firms.

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Year of publication:	2011
Authors:	Eichengreen, Barry ; Tong, Hui
Published in:	Global Economic Review. - Taylor & Francis Journals, ISSN 1226-508X. - Vol. 40.2011, 2, p. 211-225
Publisher:	Taylor & Francis Journals
Subject:	China \| exchange rate \| firms \| rest of the world

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

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