The Influence of Chinese and US Financial Markets on Asia-Pacific
11 Pages Posted: 19 Oct 2015
Date Written: October 2015
This paper presents some early results from ongoing research assessing the impact of China’s financial markets on those in other Asian-Pacific economies, and comparing it with that of the United States (Shu, He and Wang, forthcoming). Our analysis suggests that China’s influence on the regional stock and FX markets has grown over time, but its bond market is still isolated from those of the United States and Asia. US financial markets remain a strong driver, particularly during times of stress.
Keywords: China’s impact, spillovers to Asian financial markets, US, structural VAR, sign restrictions
JEL Classification: F20
Suggested Citation: Suggested Citation