Bank Lending, Inflation, and Chinas Stock Market (2004–2010)英文文献资料.docVIP

HindawiPublishingCorporation EconomicsResearchInternational Volume2011,ArticleID652983,7pages doi:10.1155/2011/652983 ResearchArticle BankLending,In?ation,andChina’sStockMarket(2004–2010) RichardC.K.Burdekin1,2andRanTao 1,2 1 2 RobertDaySchoolofEconomicsFinance,ClaremontMcKennaCollege,500E.NinthStreet,Claremont,CA91711,USA EconomicsDepartment,UniversityofWisconsin-Whitewater,WI53190,USA CorrespondenceshouldbeaddressedtoRichardC.K.Burdekin,rburdekin@ Received22August2011;Accepted31August2011 AcademicEditor:JamesR.Barth Copyright?2011R.C.K.BurdekinandR.Tao. This is an open access article distributed under the Creative Commons AttributionLicense,whichpermitsunrestricteduse,distribution,andreproductioninanymedium,providedtheoriginalworkis properlycited. The2009surgeinbanklendinginChinawasaccompaniedbyallegationsofsubstantialfundsbeingfunneledintothenation’s stock and property markets. This paper uses 2004–2010 People’s Bank survey data to examine the possible linkages between bankingactivityandthestockmarketaswellastheassociatedin?ationrisks.Ingeneral,stockmarketstrengthinChinaseemstobe accompaniedbyrisingin?ationaryconcerns,increasedbanklendingactivity,andreducedbankercon?dencethatstableconditions willbemaintained.ThissuggeststhattheShanghaimarketcouldserveasausefulindicatorvariableforChinesemonetarypolicy. 1.Introduction under the government’s easy money policy to an account with anotherbank,fromwhichtheycouldenterthestock marketawayfromthescrutinyoftheoriginallender.2 The bad loan problems of China’s large state-owned com- mercialbanks(SOCBs)havebeenwelldocumented,ashave thesuccessivecapitalinfusionsandbalancesheetcleanups that allowed Bank of China (BOC), Bank of Communica- tions(BOCOM),ChinaConstructionBank(CCB),andIn- dustrialandCommercialBankofChina(ICBC)togopub- lic in 2005-2006, followed by Agricultural Bank of China (ABC) in 2010. Reports of rising bank pro?tability have been accompanied by allegations that substantial amounts of the funds lent were being