The Impact of Brexit on the Stock Markets of the Greater China Region
| Autor: | Bernadette Andreosso-O’Callaghan, Lucia Morales |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Monetary economics
Implied volatility globalisation rising China Globalization Brexit stock markets Economic Policy Uncertainty political turbulences 0502 economics and business lcsh:Finance lcsh:HG1-9999 Economics ddc:330 Market return Business 050207 economics China Stock (geology) 050208 finance F36 05 social sciences G15 International Business Research findings economic Policy Uncertainty F65 Finance |
| Zdroj: | Articles International Journal of Financial Studies; Volume 6; Issue 2; Pages: 51 International Journal of Financial Studies, Vol 6, Iss 2, p 51 (2018) |
| Popis: | peer-reviewed An examination of Brexit and its initial impact on the main stock markets in the Greater China Region (GCR) was conducted using augmented market models that integrate Economic Policy Uncertainty (EPU) and implied volatility (VIX). The results do not seem to align with research in the field that has suggested that the EPU index helps to identify if market participants are reacting to political events. The main research findings suggest that Brexit does not appear to have an impact on the performance of market returns in the region and the influence of economic policy uncertainty in the GCR appears to be insignificant, except for Hong Kong. Overall, China’s stock markets do not seem to be panicking and overreacting to unfolding events in the UK, and market instability in the region appears to be more associated with global and regional events that are better captured by the VIX index. |
| Databáze: | OpenAIRE |
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