Regional pull vs global push factors: China and US influence on Asia-Pacific financial markets

Chang Shu, Dong He, Jinyue Dong and Honglin Wang

No 579, BIS Working Papers from Bank for International Settlements

Abstract: This paper compares spillovers from the US and Chinese financial markets to the rest of Asia-Pacific. Structural VAR analysis points to the growing influence of Chinese equities and currency movements. In normal times China's influence in the equity market has risen to a level close to that of the United States, although the relative impact of the United States became stronger in crisis periods. Nonetheless, China's bond market remains a negligible player. The influence of China may be interpreted as a "regional pull" factor, while that of the United States remains a key "global push" factor.

Keywords: China's impact; spillovers to Asian financial markets; US; structural VAR; sign restrictions (search for similar items in EconPapers)
Pages: 30 pages
Date: 2016-09
New Economics Papers: this item is included in nep-cna, nep-opm and nep-sea
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Citations: View citations in EconPapers (6)

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