The Rise of State-Connected Private Owners in China

20 Pages Posted: 7 Dec 2020 Last revised: 21 Jun 2024

See all articles by Chong-En Bai

Chong-En Bai

Tsinghua University - School of Economics & Management

Chang-Tai Hsieh

University of Chicago - Booth School of Business; University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER)

Zheng (Michael) Song

City University of Hong Kong (CityU)

Xin Wang

The Chinese University of Hong Kong (CUHK)

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Date Written: December 2020

Abstract

We use administrative registration records with information on the owners of all Chinese firms to document their connections through equity investments. We show that the largest private owners have direct equity ties with state owners, the next largest private owners have equity ties with private owners that themselves have equity ties with state owners, and the smallest private owners do not have any ties with state owners. The network of “state-connected” private owners has expanded over the last two decades. The share of registered capital of “state-connected” private owners increased by almost 20 percentage points between 2000 and 2019.

Suggested Citation

Bai, Chong-En and Hsieh, Chang-Tai and Song, Zheng (Michael) and Wang, Xin, The Rise of State-Connected Private Owners in China (December 2020). NBER Working Paper No. w28170, Available at SSRN: https://ssrn.com/abstract=3743903

Chong-En Bai (Contact Author)

Tsinghua University - School of Economics & Management ( email )

Beijing, 100084
China

Chang-Tai Hsieh

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Zheng (Michael) Song

City University of Hong Kong (CityU) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Xin Wang

The Chinese University of Hong Kong (CUHK) ( email )

Shatin, N.T.
Hong Kong
Hong Kong

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