Chinese Firms' Risky Guarantee Behavior Fuels Moral Hazards, Threatens Financial Stability
The article examines how Chinese listed companies use financial insurance. They found that these companies regularly use insurance to manage risks. This insurance system helps companies spot opportunities and assess risks. However, it also leads to problems like moral hazards and bad choices. The first regulatory rule didn't work well, but the second one did better. The article suggests ways to improve how listed companies use insurance.