IDEAS home Printed from https://ideas.repec.org/a/spr/fobric/v14y2020i1d10.1186_s11782-020-00077-3.html
   My bibliography  Save this article

Chinese consumer finance: a primer

Author

Listed:
  • Kerry Liu

    (The China Studies Centre)

Abstract

Chinese consumer finance has been booming recently, especially since 2014. However, research on this topic is scant. This study presents an updated analysis, providing original, significant contributions for academics, investors, and policymakers. We explore five perspectives: (1) macroeconomics: policies adopted by the Chinese government to enhance economic growth through promoting personal consumption; (2) financial market: China’s different types of consumer finance institutions and their financing; (3) consumers: improvements in financial inclusion and consumer protections; (4) regulations in the context of supply-side structural reforms; and (5) potential areas for future academic research.

Suggested Citation

  • Kerry Liu, 2020. "Chinese consumer finance: a primer," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-22, December.
    • Handle: RePEc:spr:fobric:v:14:y:2020:i:1:d:10.1186_s11782-020-00077-3
    DOI: 10.1186/s11782-020-00077-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s11782-020-00077-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s11782-020-00077-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Senbet, Lemma W. & Wang, Tracy Yue, 2012. "Corporate Financial Distress and Bankruptcy: A Survey," Foundations and Trends(R) in Finance, now publishers, vol. 5(4), pages 243-335, August.
    2. Dongyu Chen & Xiaolin Li & Fujun Lai, 2017. "Gender discrimination in online peer-to-peer credit lending: evidence from a lending platform in China," Electronic Commerce Research, Springer, vol. 17(4), pages 553-583, December.
    3. Ding, Jie & Huang, Jinbo & Li, Yong & Meng, Meichen, 2019. "Is there an effective reputation mechanism in peer-to-peer lending? Evidence from China," Finance Research Letters, Elsevier, vol. 30(C), pages 208-215.
    4. Cristian Badarinza & John Y. Campbell & Tarun Ramadorai, 2016. "International Comparative Household Finance," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 111-144, October.
    5. Barberis, Nicholas & Thaler, Richard, 2003. "A survey of behavioral finance," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, edition 1, volume 1, chapter 18, pages 1053-1128, Elsevier.
    6. Kerry Liu, 2018. "Why Does the Negotiable Certificate of Deposit Matter for Chinese Banking?," Economic Affairs, Wiley Blackwell, vol. 38(1), pages 96-105, February.
    7. Astrid A. Dick & Andreas Lehnert, 2010. "Personal Bankruptcy and Credit Market Competition," Journal of Finance, American Finance Association, vol. 65(2), pages 655-686, April.
    8. Franklin Allen, 2001. "Do Financial Institutions Matter?," Journal of Finance, American Finance Association, vol. 56(4), pages 1165-1175, August.
    9. Kerry Liu, 2017. "China's Interest Rate Pass-through to Commercial Banks Before and After Interest Rate Liberalisation," Economic Affairs, Wiley Blackwell, vol. 37(2), pages 279-287, June.
    10. Mingming Shi & Jun Zhou & Zhou Jiang, 2019. "Consumer heterogeneity and online vs. offline retail spatial competition," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-19, December.
    11. Kerry Liu, 2018. "Chinese Manufacturing in the Shadow of the China–US Trade War," Economic Affairs, Wiley Blackwell, vol. 38(3), pages 307-324, October.
    12. Chen, Xiao & Huang, Bihong & Ye, Dezhu, 2018. "The role of punctuation in P2P lending: Evidence from China," Economic Modelling, Elsevier, vol. 68(C), pages 634-643.
    13. Yu Hao & Shuang Liu & Zhu Liduzi Jiesisibieke & Yi-Jie Xu, 2019. "What Determines University Students’ Online Consumer Credit? Evidence From China," SAGE Open, , vol. 9(1), pages 21582440198, March.
    14. Bing Guo & Jing Wang & Steven X. Wei, 2018. "R&D spending, strategic position and firm performance," Frontiers of Business Research in China, Springer, vol. 12(1), pages 1-19, December.
    15. Mingming Shi & Xiao Yan, 2017. "Heterogeneous consumers, search and retail formats," Frontiers of Business Research in China, Springer, vol. 11(1), pages 1-16, December.
    16. Guiso, Luigi & Sodini, Paolo, 2013. "Household Finance: An Emerging Field," Handbook of the Economics of Finance, in: G.M. Constantinides & M. Harris & R. M. Stulz (ed.), Handbook of the Economics of Finance, volume 2, chapter 0, pages 1397-1532, Elsevier.
    17. Richard Hynes & Eric A. Posner, 2002. "The Law and Economics of Consumer Finance," American Law and Economics Review, American Law and Economics Association, vol. 4(1), pages 168-207, January.
    18. Jianjun Li & Sara Hsu & Zhang Chen & Yang Chen, 2016. "Risks of P2P Lending Platforms in China: Modeling Failure Using a Cox Hazard Model," Chinese Economy, Taylor & Francis Journals, vol. 49(3), pages 161-172, May.
    19. John R. Graham, 2003. "Taxes and Corporate Finance: A Review," The Review of Financial Studies, Society for Financial Studies, vol. 16(4), pages 1075-1129.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Jie & Wu, Fulong & Lu, Tingting, 2022. "The financialization of rental housing in China: A case study of the asset-light financing model of long-term apartment rental," Land Use Policy, Elsevier, vol. 112(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. GUO, Jianfeng & LIU, Xiaojie & CUI, Changnan & GU, Fu, 2021. "Influence of nonspecific factors on the interest rate of online peer-to-peer microloans in China," Finance Research Letters, Elsevier, vol. 41(C).
    2. Dongwoo Kim, 2023. "Can investors’ collective decision-making evolve? Evidence from peer-to-peer lending markets," Electronic Commerce Research, Springer, vol. 23(2), pages 1323-1358, June.
    3. Liu, Kerry, 2019. "The determinants of China's lending rates and interest rates pass-through: A cointegration analysis," Research in Economics, Elsevier, vol. 73(1), pages 66-71.
    4. Da Ke, 2021. "Who Wears the Pants? Gender Identity Norms and Intrahousehold Financial Decision‐Making," Journal of Finance, American Finance Association, vol. 76(3), pages 1389-1425, June.
    5. An, Li & Lou, Dong & Shi, Donghui, 2022. "Wealth redistribution in bubbles and crashes," Journal of Monetary Economics, Elsevier, vol. 126(C), pages 134-153.
    6. Francesco D'Acunto & Nagpurnanand Prabhala & Alberto G. Rossi, 2018. "The Promises and Pitfalls of Robo-advising," CESifo Working Paper Series 6907, CESifo.
    7. Francisco Gomes & Michael Haliassos & Tarun Ramadorai, 2021. "Household Finance," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 919-1000, September.
    8. Danisewicz, Piotr & Elard, Ilaf, 2023. "The real effects of financial technology: Marketplace lending and personal bankruptcy," Journal of Banking & Finance, Elsevier, vol. 155(C).
    9. Raman Uppal & Harjoat Bhamra, 2016. "Do Individual Behavioral Biases Affect Financial Markets and the Macroeconomy?," 2016 Meeting Papers 1358, Society for Economic Dynamics.
    10. Damar, H. Evren & Gropp, Reint E. & Mordel, Adi, 2019. "Flight from safety: How a change to the deposit insurance limit affects households' portfolio allocation," IWH Discussion Papers 19/2019, Halle Institute for Economic Research (IWH).
    11. Matthias Horn & Andreas Oehler, 2020. "Automated portfolio rebalancing: Automatic erosion of investment performance?," Journal of Asset Management, Palgrave Macmillan, vol. 21(6), pages 489-505, October.
    12. Andreas Dietrich & Reto Rey, 2020. "What Matters to Individual Investors: Price Setting in Online Auctions of P2P Consumer Loans," Papers 2003.11347, arXiv.org, revised Dec 2022.
    13. Wang, Qi & Xiong, Xiong & Zheng, Zunxin, 2021. "Platform Characteristics and Online Peer-to-Peer Lending: Evidence from China," Finance Research Letters, Elsevier, vol. 38(C).
    14. Wu, Yu & Zhang, Tong, 2021. "Can credit ratings predict defaults in peer-to-peer online lending? Evidence from a Chinese platform," Finance Research Letters, Elsevier, vol. 40(C).
    15. Aloisio Araujo & Bruno Funchal, 2015. "How Much Should Debtors be Punished in Case of Default?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 47(2), pages 229-245, April.
    16. Declan French, 2023. "From financial wealth shocks to ill‐health: Allostatic load and overload," Health Economics, John Wiley & Sons, Ltd., vol. 32(4), pages 939-952, April.
    17. Jianwen Li & Jinyan Hu, 2022. "Migrants and default: Evidence from China," International Review of Finance, International Review of Finance Ltd., vol. 22(3), pages 472-505, September.
    18. Antti Petajisto, 2004. "Why Do Demand Curves for Stocks Slope Down?," Yale School of Management Working Papers amz2458, Yale School of Management, revised 01 Sep 2008.
    19. Bucher-Koenen, Tabea & Koenen, Johannes, 2015. "Do Seemingly Smarter Consumers Get Better Advice?," MEA discussion paper series 201501, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    20. Li, Jianwen & Hu, Jinyan, 2019. "Does university reputation matter? Evidence from peer-to-peer lending," Finance Research Letters, Elsevier, vol. 31(C), pages 66-77.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:fobric:v:14:y:2020:i:1:d:10.1186_s11782-020-00077-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.