Working Paper Series,
Stockholm School of Economics, China Economic Research Center

Abstract: It is commonly argued that China's financial markets are effectively insulated from the rest of the world. To see if this is true and to better understand China's financial development, we analyze China's integration with major financial markets. Using conditional copulas, we show that China has experienced an increasing level of integration with several major financial markets during the last decade, even though the country's financial markets are commonly seen as being insulated. Furthermore, the level of integration has increased with several major markets during the current financial crisis. The results and possible reasons for the increasing integration are analyzed and the implications for policymakers and market participants are discussed.

Keywords: China; financial market integration; codependence; copula

JEL-codes: F30; G15

27 pages, June 1, 2009

Full text files

hacerc2009-010.pdf  Full text

Download statistics

• Stockholm School of Economics, China Economic Research Center
• Ordering Working Papers
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Malin Nilsson ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:11:23.