China in Tax Havens

11 Pages Posted: 23 Jan 2023 Last revised: 1 Nov 2024

See all articles by Christopher Clayton

Christopher Clayton

Yale School of Management

Antonio Coppola

Stanford University

Amanda Dos Santos

Columbia University - Columbia Business School

Matteo Maggiori

Stanford Graduate School of Business

Jesse Schreger

Columbia University - Columbia Business School, Economics; National Bureau of Economic Research (NBER)

Date Written: January 2023

Abstract

We document the rise of China in offshore capital markets. Chinese firms use global tax havens to access foreign capital both in equity and bond markets. In the last twenty years, China's presence went from raising a negligible amount of capital in these markets to accounting for more than half of equity issuance and around a fifth of global corporate bonds outstanding in tax havens. Using rich micro data, we show that a range of Chinese firms, including both tech giants and SOEs, use these offshore centers. We conclude by discussing the macroeconomic and financial stability implications of these patterns.

Suggested Citation

Clayton, Christopher and Coppola, Antonio and Dos Santos, Amanda and Maggiori, Matteo and Schreger, Jesse, China in Tax Havens (January 2023). NBER Working Paper No. w30865, Available at SSRN: https://ssrn.com/abstract=4334944

Christopher Clayton (Contact Author)

Yale School of Management ( email )

165 Whitney Ave
New Haven, CT 06511

Antonio Coppola

Stanford University ( email )

Stanford, CA 94305
United States

Amanda Dos Santos

Columbia University - Columbia Business School ( email )

665 W 130th St
New York, NY 10027
United States

Matteo Maggiori

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, 94305
United States

Jesse Schreger

Columbia University - Columbia Business School, Economics ( email )

420 West 118th Street
New York, NY 10027
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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