Analysis of the Relationships between Fluctuation of Chinese Stock Market and Global Markets

Abstract

As a matter of fact, China’s stock market is moving towards globalization, with China’s A-shares formally included in the MSCI index on 1 June 2018, a move closely watched by global investors and one that will affect the flow of trillions of dollars in making index asset allocations. With this in mind, in the question of whether China’s stock market does not exist on its own, and its movements are closely linked to events in the world at different times, this study conducts a comparative study China’s stock market versus other economies. To be specific, from the intuitive stock market trend, volatility in China’s stock market and the world’s stock markets are inevitably correlated. According to the analysis, at certain points in time, some important financial activities will have an impact on the stock markets of China and other economies. Overall, these results shed light on guiding further exploration of investigation the connections between various markets.