This paper studies the heterogeneous response of State-owned enterprises (SOEs) and nonState-owned enterprises (nonSOEs) to the monetary policy. I find that SOEs’ investment declines by 5% - 12% more than nonSOEs after a 100 basis point monetary tightening shock using recent data from China. I...

We find crackdown on shadow banking has real effects. For identification, we exploit a policy - “ New Regulations on Asset Management “ (NRAM) - that restricts the issuance of wealth management products (WMP) in China. We show firms with high WMP exposure experience a decline in investments....

We study the impact of shadow banking regulation on banks' portfolio choice and firms' investment. For identification, we exploit a policy -- "New Asset Management Rules" -- that restricts the issuance of wealth management products in China. We find that depositors substitute the WMPs with...