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Is China’s banking industry embracing sustainable investment?

Author

Listed:
  • Xiaojia Li
  • Haitao Yin
  • Jiaxin Liu

Abstract

Built upon an analysis of 2858 publicly listed companies in China, we found that although polluting companies historically received more loans from banks than nonpolluting companies, this trend has recently changed in China. Polluting companies receive fewer loans from banks and the borrowing cost increases over time. This suggests that the Chinese banking industry is becoming more environmentally responsible in its loan decision-making.

Suggested Citation

  • Xiaojia Li & Haitao Yin & Jiaxin Liu, 2018. "Is China’s banking industry embracing sustainable investment?," Applied Economics Letters, Taylor & Francis Journals, vol. 25(18), pages 1269-1272, October.
  • Handle: RePEc:taf:apeclt:v:25:y:2018:i:18:p:1269-1272
    DOI: 10.1080/13504851.2017.1418065
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    Cited by:

    1. Gouthami Kothakapa & Samyukta Bhupatiraju & Rahul A. Sirohi, 2021. "Revisiting the link between financial development and industrialization: evidence from low and middle income countries," Annals of Finance, Springer, vol. 17(2), pages 215-230, June.

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