Chinese bond issues boost stock market for state-owned companies.
Corporate bond markets in China have been growing, and a study looked at how the stock market reacts to Chinese companies issuing bonds. They found that generally, Chinese bond issues lead to a positive stock market reaction. However, this positive reaction is more significant for central state-owned companies compared to those owned by local or provincial governments. Additionally, insider ownership can influence how the stock market reacts to a bond issue, while management characteristics do not seem to have an impact.