The SOE Premium and Government Support in China's Credit Market

This paper was previously circulated under the title, “Price Discovery and Market Segmentation in China’s Credit Market.” We thank Wei Xiong (the Editor), two anonymous referees and an associate editor for helpful comments and suggestions. We benefited from extensive discussions with Darrell Duffie and valuable comments from Chong-En Bai, Antje Berndt (discussant), Zhiguo He (discussant), Chang-Tai Hsieh (discussant), Wei Li, Jun Liu, Jacopo Ponticelli (discussant), Michael Song (discussant), Yongxiang Wang, Bernie Yeung, and the seminar participants at SAIF Brownbag, MIT Finance Student Workshop, CUHK Shenzhen, Peking HSBC, Tsinghua SEM, Johns Hopkins Carey Business School, China Renmin University, UNSW Sydney, ABFER’s 2021 monthly webinar series, CICM 2021, CFRC 2021, CMES 2021, CICF 2021, NBER Capital Markets and the Economy 2021, Sixth Annual Bank of Canada-Tsinghua PBCSF-University of Toronto Conference on the Chinese Economy, FMA 2021, NFA 2021 and GISF 2022. Zhe Geng acknowledges financial support from the National Natural Science Foundation of China (grant no. 72302058). We have read the Journal of Finance disclosure policy and have no conflicts of interest to disclose. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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