Default and Bankruptcy Resolution in China-Reference-Cited by-同舟云学术

Default and Bankruptcy Resolution in China

Published:2023-11-01 Issue:1 Volume:15 Page:369-385
ISSN:1941-1367
Container-title:Annual Review of Financial Economics
language:en
Short-container-title:Annu. Rev. Financ. Econ.

Author:

Hotchkiss Edith¹,John Kose²,Li Bo³,Ponticelli Jacopo⁴⁵⁶,Wang Wei⁷

Affiliation:

1. Carroll School of Management, Boston College, Boston, Massachusetts, USA

2. Stern School of Business, New York University, New York, USA

3. PBC School of Finance, Tsinghua University, Beijing, China;

4. Kellogg School of Management, Northwestern University, Evanston, Illinois, USA

5. National Bureau of Economic Research, Cambridge, Massachusetts, USA

6. Centre for Economic Policy Research, London, United Kingdom

7. Smith School of Business, Queen's University, Kingston, Ontario, Canada

Abstract

In this article, we review the literature on the recent growth of corporate debt in China and present stylized facts on the evolution of debt composition, nonperforming loans, defaults, and bankruptcy filings. We then describe the legal and political institutions that characterize the system for restructuring and liquidating financially distressed firms, including recent reforms of China's bankruptcy law. Finally, we discuss the main challenges faced by China in the implementation of these reforms, including frictions in judicial enforcement. We also propose potential avenues for future research.

Publisher

Annual Reviews

Subject

Economics and Econometrics,Finance

Link

https://www.annualreviews.org/doi/pdf/10.1146/annurev-financial-110921-014557

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2. The Handbook of China's Financial System