IDEAS home Printed from https://ideas.repec.org/a/mes/chinec/v59y2026i2p141-159.html

Can Precious Metals Act as Safe-Haven or Hedge Assets in Capital Markets of China?

Author

Listed:
  • Ewa Feder-Sempach
  • Piotr Szczepocki
  • Joanna Bogołębska

Abstract

The main objective of the article is to examine the role of four precious metals, gold, silver, platinum, and palladium, as potential safe havens and hedgers for investors trading on the main Chinese Stock Exchanges during the period 2014–2023. We apply the regression model with dummy variables to capture extreme stock market movements with residual term modeled as a GARCH process if heteroskedasticity exists. The main findings show that precious metals can play the role of safe-haven and hedge assets, but to a different extent. Gold seems to work as the best hedge and safe haven for all Chinese markets, in contrast to silver and platinum. Palladium can also serve as a safe haven, but only for Shenzhen investors. Gold is the best safe-haven and hedge, as it is perceived as a financial asset that performs monetary functions. The novelty of the research lies in investigating the safe-haven and hedge effect in different currencies and quarter-by-quarter manner.

Suggested Citation

  • Ewa Feder-Sempach & Piotr Szczepocki & Joanna Bogołębska, 2026. "Can Precious Metals Act as Safe-Haven or Hedge Assets in Capital Markets of China?," Chinese Economy, Taylor & Francis Journals, vol. 59(2), pages 141-159, March.
    • Handle: RePEc:mes:chinec:v:59:y:2026:i:2:p:141-159
    DOI: 10.1080/10971475.2025.2529647
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10971475.2025.2529647
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10971475.2025.2529647?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:59:y:2026:i:2:p:141-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.