The Policy Research Working Paper 10513 examines the effects of the internationalization of China's equity markets since 2012. The paper compares the evolution of equity financing and investment activities for domestic listed firms and those connected to international markets. The findings show significant increases in financial and investment activities for domestic listed firms with access to international investors, while those without such access saw limited effects. The internationalization of China's equity markets has led to increased competition and improved corporate governance, but also poses challenges for small and medium-sized enterprises. Overall, the paper highlights the importance of internationalization for China's economic development.
