China's stock market increasingly linked with Asian markets, impacting global finance.
The study looked at how China's stock market is connected to other global financial markets. They used a special model to see how changes in one market affect the others. The results showed that China's stock market is becoming more linked to Asian markets over time, but the influence is stronger from Asia to China. Foreign exchange markets also play a big role in affecting Asian stock markets. During the global financial crisis, China and Europe's stock markets were connected through exchange rates and interest rates.