TY - BOOK ID - 134238750 TI - The Internationalization of China’s Equity Markets AU - Cortina, Juan. AU - Martinez Peria, Maria. AU - Schmukler, Sergio. AU - Xiao, Jasmine. PY - 2023 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Economics: General KW - Finance: General KW - Investments: Stocks KW - Corporate Finance KW - International Monetary Arrangements and Institutions KW - Financial Economics: General KW - Financial Crises KW - International Financial Markets KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Capital Budgeting KW - Fixed Investment and Inventory Studies KW - General Financial Markets: General (includes Measurement and Data) KW - Multinational Firms KW - International Business KW - Financial Markets and the Macroeconomy KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Finance KW - Investment & securities KW - Multinationals KW - Stock markets KW - Financial markets KW - Stocks KW - Financial institutions KW - Foreign corporations KW - Economic sectors KW - Emerging and frontier financial markets KW - Market capitalization KW - Currency crises KW - Informal sector KW - Economics KW - Stock exchanges KW - Financial services industry KW - China, People's Republic of UR - https://www.unicat.be/uniCat?func=search&query=sysid:134238750 AB - China’s equity markets internationalization process started in the early 2000s but accelerated after 2012, when Chinese firms’ shares listed in Shanghai and Shenzhen gradually became available to international investors. This paper studies the effects of the post-2012 internationalization events by comparing the evolution of equity financing and investment activities for: (i) domestic listed firms relative to firms that already had access to international investors and (ii) domestic listed firms that were directly connected to international markets relative to those that were not. The paper finds large increases in financial and investment activities for domestic listed and for connected firms, with significant aggregate effects. The evidence also suggests the rise in firms’ equity issuances was primarily and initially financed by domestic investors. International investors’ portfolio holdings in Chinese equity markets and ownership in firms increased markedly only once Chinese firms’ locally issued shares became part of the MSCI Emerging Markets Index. ER -