The Stock Connect to China

Zhiguo He (), Yuehan Wang and Xiaoquan Zhu

No 30893, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: As a bridge between Chinese mainland and international financial markets, the Stock Connect program allows investors on both sides to gain mutual access. By analyzing how cross-border flows respond to macro-related shocks, we show that compared with possibly homemade foreign investors, genuine foreign investors are more likely affected by the U.S. monetary shocks, the exchange rate risk, the U.S. market performance as well as the cross-market valuation disparity. The paper highlights the importance of profiling different groups of cross-border participants over market integration.

JEL-codes: E50 F65 G23 O16 (search for similar items in EconPapers)
Date: 2023-01
New Economics Papers: this item is included in nep-cna
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Published as Zhiguo He & Yuehan Wang & Xiaoquan Zhu, 2023. "The Stock Connect to China," AEA Papers and Proceedings, vol 113, pages 125-130.

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