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De‐financialization and the Increase in Corporate Research and Development Intensity: The Effects of China's 2018 New Asset Management Rules

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  • Jiaxin Wang
  • Daxin Dong

Abstract

In 2018, China implemented the Guidelines on Regulating the Asset Management of Financial Institutions, a financial regulation aimed at restricting enterprises' financial investments through asset management products. This policy sought to curb corporate financialization and potentially impact other corporate activities. Treating this policy as a quasi‐experiment, the present study employed a generalized difference‐in‐differences regression model to examine its effect on corporate research and development (R&D) from the perspective of de‐financialization. Using data from Chinese listed companies spanning 2013 to 2022, the key findings are as follows: (i) The policy significantly boosted corporate R&D intensity. Enterprises with higher levels of financialization before the policy experienced a more substantial increase in R&D intensity after its implementation. (ii) Heterogeneity tests reveal that the positive effect of the policy on R&D was more pronounced for firms in high‐tech industries, those with greater corporate transparency, and those receiving more government subsidies. (iii) The policy's impact on R&D was driven by the reallocation of resources from financial to real assets, as well as the alleviation of firms' financing constraints.

Suggested Citation

  • Jiaxin Wang & Daxin Dong, 2025. "De‐financialization and the Increase in Corporate Research and Development Intensity: The Effects of China's 2018 New Asset Management Rules," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 33(3), pages 197-233, May.
    • Handle: RePEc:bla:chinae:v:33:y:2025:i:3:p:197-233
    DOI: 10.1111/cwe.12593
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