Market integration in China

Over the last three decades, China's product, labor, and capital markets have become gradually more integrated within its borders, although integration has been significantly slower for capital markets. There remains a significant urban-rural divide, and Chinese cities tend to be under-sized by international standards. China has also integrated globally, initially through the Special Economic Zones on the coast as launching grounds to connect with world markets, and subsequently through the accession to the World Trade Organization. For future policy considerations, this paper argues that its economic production needs to be spatially concentrated, and its social services need to be spread out to the interior to ensure harmonious development and domestic integration (through inclusive rural-urban transformations and effective territorial development).Economic Theory&Research,Banks&Banking Reform,Debt Markets,Emerging Markets,Access to Finance

Do Insiders Trade on Government Subsidies?

We examine whether and how insiders trade on government subsidies, a major instrument through which the governments intervene in the economy. Using a novel dataset of government subsidies of Chinese listed firms, we find that net insider purchase increases significantly during the month of subsidy receipt. The effect of subsidies on insider trading is weaker in firms with a more transparent information environment and when subsidies are granted in a more predictable manner. In contrast, the effect is more pronounced for politically connected firms. Further analysis shows that the subsidy-trading relation may reflect both insiders’ informational advantage concerning subsidies and their superior ability to detect mispricing-related opportunities. Our findings provide new insights into the capital market consequences of government subsidies through the lens of insider trading

Cyclic performance evaluation of a polyethylenimine/silica adsorbent with steam regeneration using simulated NGCC flue gas and actual flue gas of a gas-fired boiler in a bubbling fluidized bed reactor

To accelerate the deployment of Carbon Capture and Storage (CCS) based on the solid amine adsorbents towards a practical scale application relevant to Natural Gas Combined Cycle (NGCC) power plants, this study has evaluated the cyclic performance of a polyethylenimine/silica adsorbent of kg scale in a laboratory scale bubbling fluidized bed reactor. A high volumetric concentration 80?90 vol% of steam mixed with N2 and CO2 has been used as the stripping gas during a typical temperature swing adsorption (TSA) cycle. Both the simulated NGCC flue gas and the actual flue gas from a domestic gas boiler have been used as the feed gas of the CO2 capture tests with the solid adsorbent. Various characterization has been carried out to elucidate the possible reasons for the initial capacity decline under the steam regeneration conditions. The effect of presence of CO2 in the stripping gas has also been studied by comparing the working capacities using different regeneration strategies. It has been demonstrated that the breakthrough and equilibrium CO2 adsorption capacities can be stabilized at approximately 5.9 wt% and 8.6 wt%, respectively, using steam regeneration for both the simulated and actual natural gas boiler flue gases. However, using a concentration of 15 vol% CO2 in the stripping gas has resulted in a significantly low working capacity at a level of 1.5 wt%, most likely due to the incomplete C

Population Ageing, Labour Market Rigidity and Corporate Innovation: Evidence from China

Population ageing leads to labour scarcity and labour market rigidity. Contrary to supply-side economists’ belief that labour market rigidity tends to suppress firm innovation, we provide novel evidence of a positive relationship between population ageing and firm innovation in China. This enhancement effect is greater for firms with higher labour costs, consistent with the argument that labour scarcity encourages labour-saving innovation in response to demographic shifts. In addition, the observed positive effect is particularly pronounced for state-owned enterprises, which are widely acknowledged to be overstaffed with older workers, and firms in industries that pursue Schumpeter-II innovation and engage in more intense research and development. In addition, population ageing helps firms to generate more exploitative (vs. exploratory) innovation. Overall, our findings suggest that firms facing population ageing can adapt their strategies to innovate successfully

Maximizing Minimum Pressure in Fluid Dynamic Bearings of Hard Disk Drives

We focus on the central spindle which supports the rotating magnetic platters which hold all of the data. The spindle must operate with great precision and stability at high rotational speeds. Design practice has converged on oil-lubricated hydrodynamic journal bearings as the most common choice for spindles. That is, a layer of viscous oil separates a rotating shaft (the bearing) from the fixed outer sleeve (the journal). In hard drives, it is very important for the shaft to be centered within the sleeve. Plain journal bearings (i.e. both surfaces are circular cylinders) are unstable to perturbations that push the shaft off-center. It was found that this stability problem can be overcome by cutting diagonal grooves into the journal in a pattern called a herring-bone. Another consequence of this design is that very high pressures are generated by the grooves as they drive the oil to the middle of the bearing, away from the top/bottom ends of the spindle. This pumping action generally works to oppose leakage out of the bearing. We examine how choices for the groove pattern can influence the key properties of the bearing. The focus is to understand the effect of the groove geometry on the pumping action. In particular the undesirable behavior caused by the low pressures created near the top/bottom ends of the bearing which, under many conditions, may result in the pressure becoming negative, relative to atmospheric pressure. Negative pressure can result in cavitation or, when it occurs near an air-oil interface, can cause air to be ingested and hence create bubbles. Any bubbles in the oil can corrupt the lubricating layer in the bearing and, as they are created and collapse, can cause significant undesirable vibrations. The negative pressures have therefore been identified as one of the key problems in design of hard disk drive bearings. We will use numerical computations and some analysis to show that by modifying the groove geometry we can reduce the negative pressure while retaining good stability characteristics