China’s Footprint on World Stock Markets | School of Management and Economics

Topic:	China’s Footprint on World Stock Markets
Time&Date:	10:00 am -11:30 pm, May 16, 2025 (Friday)
Venue	Room 904, Teaching Complex D Building
Speaker:	Chang Ma Fudan University
Abstract:	Chinese private portfolio equity outflows, though small, are growing rapidly because of capital account liberalization and capital flight. Using granular stock-holding data from QDII (Qualified Domestic Institutional Investor) mutual funds as a proxy for total private portfolio equity flows, we identify a nascent financial channel of international transmission for Chinese monetary policy shocks to world stock markets. Our event study analysis of monetary announcements reveals that contractionary Chinese monetary policy shocks depress returns on country indexes and individual stocks more exposed to QDII fund holdings. The results are robust to controlling for the real channels of transmission of Chinese monetary policy and other confounders and are driven by household portfolio rebalancing from more to less risky assets in response to the shocks. We further validated our findings through an event study of the Chinese Spring Festival, which found consistent results.
Biography:	Chang Ma is an Associate Professor of Finance at International School of Finance, Fudan University (FISF). He received his Ph.D. from Johns Hopkins University in 2018. He has also worked at the IMF as a summer intern in 2016 and has been a visiting researcher at Bank of Finland in 2020 and 2024 and Hong Kong Institute for Monetary and Financial Research in 2022. His research focuses on International Finance, Macroeconomics and Macroprudential Policy. His paper has been published in leading academic journals including Review of Financial Studies, Journal of International Economics, Journal of the European Economic Association, etc. His research is widely featured in the Wall Street Journal, UNIDO, VoxEU, VoxChina, etc.