Wang Yongqin | Collateral Constraint and China's Credit Boom in the Global Financial Crisis: A Loan-

Recently, the 2021 "International Trade Disputes and Globalization Restructuring Academic Symposium" was successfully held online.Wang Yongqin, Professor of Economics, Fudan UniversityAttendInternational Finance Thematic Sub-Forum 4And shared with his collaborators (see below) a piece titled "Collateral constraints during the global financial crisis and China's credit boom: An analysis from the lending perspective》Collateral Constraint and China’s Credit Boom in the Global Financial Crisis: Loan-level AnatomyThe article.

Article author

Wang Yongqin is a professor and doctoral supervisor at the School of Economics, Fudan University. He holds a PhD in Economics from Fudan University (2004), completed postdoctoral research at Yale University (2008-2010), and was a Fulbright Senior Visiting Scholar at Harvard University (2016-2017). He is currently the director of the Green Court Emerging Financial Business Research Center at Fudan University. He has published numerous articles in authoritative international and domestic economics journals (many of which were lead articles), such as...Journal of Economics, China Economic Review He has published over forty articles in journals including *Economic Research Journal* (11 articles), *Management World* (2 articles), *Financial Research* (5 articles), *World Economy* (8 articles), and other core journals; and has published nine books in Chinese and English. He was selected for the "New Century Excellent Talents Support Program" (2008), the "Pujiang Talent" program (2011), and was named a Shanghai "Social Science Newcomer" in 2012-2013. His research on China's financial system won the "Best Paper Award of the Year" from *Financial Research Journal* (2014). He also serves as a member of the Expert Committee of the Shanghai Financial Court and a researcher at the Shandong Provincial Government Development Research Center.

Wang Yongqin

In an article with his collaborators, Professor Wang Yongqin mentioned that...The articleIn the post-economic crisis context, this study primarily examines the impact of collateral constraints on the bank lending market. Professor Wang Yongqin and his collaborators first raised the following questions: 1. What factors led to changes in the collateral structure? 2. How did bank credit policies change in the context of the economic crisis? 3. And what are the corresponding impacts of these changes in credit policies? Through this research, the main conclusions are as follows: 1. Large state-owned enterprises in China use less collateral; enterprises with lower credit ratings use secured loans; small businesses use more mortgage loans as collateral; 2. In the post-economic crisis context, banks have higher requirements for collateral; and the ratio of collateralized to secured loans has increased; the ratio of unsecured loans has decreased; 3. Surprisingly, long-term loans have contracted sharply, while short-term loans have increased; this phenomenon is detrimental to long-term investment; 4. Enterprises with more collateral constraints can only reduce expenditures on R&D, patents, etc.

 (Translated from a paper abstract provided by the guest)

Sheng Liugang

Sheng Liugang, Associate Professor, Department of Economics, Chinese University of Hong KongThe article provides a brief summary and offers three suggestions:1. The theoretical analysis in this article is mainly based on the traditional difference-in-differences model, with risk lending as the control group and the other three variables as the experimental group. The data for the experimental group ends in the fourth quarter of 2008.Therefore, Professor Wang believes that the time span of the control group data may not be sufficient;Furthermore, there may be many other types of interfering factors during this period. For example, whether the change in banks' risk appetite is due to a crisis, a change in monetary policy, or fiscal stimulus, it is not easy to identify the factors that affect bank behavior.2. The article's focus could be more on how the loan structure will change after being impacted by GFC and what the reasons for these changes are.3. Companies that engage in virtual interactions with crisis factors are likely to be more significantly affected by the financial crisis.

(The volunteers compiled and wrote the script based on the live stream content.)

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