The 2009 surge in bank lending in China was accompanied by allegations of substantial funds being funneled into the nation's stock and property markets. This paper uses 2004-2010 People's Bank survey data to examine the possible linkages between banking activity and the stock market as well as...

Disaggregated province-by-province analysis appears to confirm the importance of ongoing redistributive lending by the big four Chinese banks together with lending to state-owned enterprises that is especially pronounced amongst the poorer provinces. Agricultural Bank of China's own allocation...