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China's financial market integration with the world

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  • Anders Johansson

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 analyse 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, albeit at a slow pace and from very low levels. Furthermore, the level of integration has increased with several major markets during the global financial crisis. The results and possible reasons for the increasing integration are analysed and the implications for policymakers and market participants are discussed.

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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Journal of Chinese Economic and Business Studies.

Volume (Year): 8 (2010)
Issue (Month): 3 ()
Pages: 293-314

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Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:293-314

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Related research

Keywords: China; financial market integration; co-dependence; Copula;

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Cited by:
  1. Anders C. Johansson, 2012. "China’s Growing Influence in Southeast Asia – Monetary Policy and Equity Markets," The World Economy, Wiley Blackwell, vol. 35(7), pages 816-837, 07.

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