The coronavirus outbreak that began last December sharply curtailed economic activities across China. In response to this sudden, countrywide, and potentially devastating liquidity shock, many coordinated economic and financial policies were initiated by the Chinese authorities to help the economy battle against the epidemic. In particular, policy tools are designed to support small- and medium-sized firms, and industries and regions hit hard by the outbreak. We finally discuss the effectiveness of the policy intervention based on a recent survey which covers a representative sample of public and private firms.

More Research From These Scholars

BFI Working Paper Nov 25, 2019

Commonality in Credit Spread Changes: Dealer Inventory and Intermediary Distress

Zhiguo He, Paymon Khorrami, Zhaogang Song
White Paper Jun 19, 2020

Post-Lockdown Economic Recovery in China: April and May

Qin Chen, Zhiguo He, Chang-Tai Hsieh, Zheng Michael Song
Topics:  COVID-19
BFI Working Paper Nov 20, 2019

Pledgeability and Asset Prices: Evidence from the Chinese Corporate Bond Markets

Hui Chen, Zhuo Chen, Zhiguo He, Jinyu Liu, Rengming Xie
Topics:  Financial Markets