Volume 4

In 2020, the impact of the COVID-19 pandemic plunged the world into its worst economic crisis since 2008, and international trade was frustrated by the double whammy of escalating protectionism and the pandemic in recent years. Affected by the epidemic in 2020, many Chinese companies cannot sustain themselves, and the remaining enterprises are only barely maintaining the status quo and waiting for the epidemic to pass. During this period, the overall trend of the stock market fell sharply due to the epidemic, but due to the government's policies, it was still pulled up.

Show more

Digital inclusive finance, a byproduct of traditional banking and digital technology, has a substantial effect on the financial standing of businesses. Using information from Chinese A-share listed firms between 2011 and 2018, this paper empirically investigates the connection between the emergence of digital financial inclusion and investment efficiency and financialization of real enterprises, as well as their underlying mechanisms. The results show that digital financial inclusion rises a suppressive effect on the investment efficiency of enterprises. Further, this effect is influenced by other control factors. The mechanism test shows that digital financial inclusion enhances the process of financialization of corporations. Findings of this paper help clarify the mechanism of the role of digital inclusive finance. Based on the empirical findings, this paper recommends controlling the unrestricted promotion of digital inclusive finance but encouraging balanced expand.

Show more

In 2010, the economy scale of China has become the second largest in the worldwide after exceeding Japan which just next to the economy scale of United States which has kept playing an important role in the global economy. In this case, more and more attention has been focused on it and especially for its financial market which is young but huge in scale. However, as the Chinese financial market was firstly established in 1993, the history of its development is very short and the research related to it is very limited, particularly for the bond market of China which has a very different institution and structure compared with the bond market of the main developed countries in the world where the main changes are followed by the instruction and plan of the government. As the bond is the financial instrument which decides the interest rate, its market has a great influence on the financial liquidity of the whole economy. In addition, the high interest rate in the bond market of China compared with the other bond market has also attracted the foreign investors in the whole world to increase their investment to the market. Therefore, studying the bond market of China is very helpful in understanding the current situation of the bond market of China so as to find out its problems and solutions which are very important for the economy to grow in a healthy way. In this paper, the solutions of how to solve the problems about the risk, market efficiency and the sustainable development of the bond market of China will be analyzed based on its current situation including the structure and scale.

Show more

In the past few decades, the import of embodied technologies, mainly the import of capital goods and intermediate goods, has met the needs of industrial structure upgrading and export expansion. This paper uses the DEA-Malmquist method to measure the total factor productivity and its decomposition value of 26 manufacturing industries in China from 1992 to 2020, and uses a fixed effect model to empirically analyze the impact of embedded technology imports on China's manufacturing total factor productivity. The results show that the import of embedded technology has a positive effect on the total factor productivity of the manufacturing industry and technological advancement, while the impact on technical efficiency is not significant. After classifying the manufacturing industry according to the technical level, it is found that the import of embedded technology significantly improves the total factor productivity of low-tech and medium-tech manufacturing, while the impact on resource-based manufactured goods and high-tech manufactured goods is not significant. Finally, this paper gives policy recommendations based on the empirical results.

Show more

In this modern world, talented people create thousands of new technologies like John von Neumann who invented computers and Martin Lawrence Cooper invented phones, all of these E-Techs are recording every information from a person, an organization, or a nation and transmitting the information to the public website. Newspapers, TV shows, and websites always show people information from everywhere in totally different fields, nations are using those technologies to gather information from every corner of the world to have a Big Data Analysis. But, how do those investors or businessmen make a big profit from information? In this essay, I will use qualitative research like a questionnaire to show the influence of financial informatization on the financial industry. The based result was financial informatization is pushing financial industry creation and development and improving the core competitiveness. In conclusion, financial informatization is showing a positive influence on the financial industry.

Show more

Nowadays, as a such big number of countries pay more attention to the scientific research strength, The importance of high and new technology is more and more recognized, the proportion in the securities market is increasing, technology stocks in the eyes of investors. This paper selects 5 Chinese technology growth stocks in Hang Seng Index as the research object and establish the dataset which contains the monthly time series of price in Hang Seng index. Fama experiment is used to well diversify the idiosyncratic risk and make sure that the portfolio is affected by the system risk. Through the mean-standard deviation plot, it can check the independence of the data we collect and check the normality. The portfolio can be divided into two situations: one includes risk-free assets and non risk-free assets. Finally, the performances of the portfolios are accessed including return volatility and weight of assets. The results show that, first, based on the Fama experiment, at least 5 stocks must be chosen to deal with idiosyncratic risk. Second, according to the mean-standard deviation plot,all the assets’ data are i.i.d. Third, the result show that both maximum return portfolios have the high return, and the portfolio contains risk-free assets is higher than portfolios without risk-free assets in the maximum return portfolio, but lower in the maximum Sharpe ratio portfolio. The findings may be useful to stimulate investors pay attention to invest in the technology stocks and create efficient portfolio. Meanwhile, this paper can suggest people how to rationally allocate stocks from multiple dimensions, build an effective combination, and try to obtain higher returns as far as possible in the condition of low risk.

Show more

The pandemic has affected the world economy, specifically the manufacturing and biomedical sectors. This study examines the effects of COVID-19 on the yield and its volatility of manufacturing and biopharmaceutical indexes over a range of periods. It concludes that while the pandemic has had a short-term negative impact on the manufacturing index, the long-term effects on the biopharmaceutical industry outweigh any short-term fluctuations. But over time, the manufacturing index continues to represent its fundamentals. This paper aims to analyze the different short-term and long-term impacts of the pandemic on the biopharmaceutical index and the manufacturing index through data analysis.

Show more

The "pause button" on Ant Group's dual listing in September 2020 attracted great attention from the fintech companies regarding their use of asset-backed securities (ABS) to lend huge amounts of money to consumers. Chinese regulators responded to this financial practice and introduced a series of regulations to minimize the potential risks of these lending activities and the adverse impacts on consumers. In this paper, the author explains how fintech companies use ABS to conduct their loaning activities, analyzes the risks presented in the industry, and introduces the corresponding policies and regulations.

Show more

The valuation of the stock is one of the most fundamental financial concepts, whereas the Dividend Discount Model is the basis of the stock valuation. The model state that the value of the stock is the sum of the present value of the infinite future dividend. It is, however, impossible for Humans to forecast future dividend accurately. Therefore, the assumption of the future dividend and the extension of the dividend discount model are required. In this paper, the assumption, advantages, and limitations of the general Dividend discount model and its extension, including the Fix dividend discount model, Gordon growth model, Two-stage model, Three-phase model, H-model, Geometric and additive model, and the modified Geometric and additive model, are introduced in this paper, which can be used as a reference for the investors for them to make their financial decision or for the scholars for their researches.

Show more

With the rapid development of global manufacturing industry, many manufacturers begin to cooperate with each other. In China, a large number of foreign-funded enterprises in the automobile industry have settled in the Chinese mainland to set up factories and cooperate with local manufacturers. It is a significant task to find a way to optimize the structure of the complex supply network in the manufacturing industry. The paper selects the data on the share ratio relationship between enterprises in the automotive supply chain network published in the China Automotive Industry Yearbook, and selects appropriate software to analyze the topology structure characteristics of the supply chain network. Through numerical analysis, we can conclude that the structure features of supply chain networks can help us identify the hidden dangers of important nodes and point out the problems existing in the supply.

Show more