{
  "title": "China’s Growing Influence on Asian Financial Markets",
  "publication": "IMF Working Papers, August 12, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/chinas-growing-influence-on-asian-financial-markets-44187",
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  "summary": "This paper finds that financial spillovers from China to regional markets are on the rise. The main transmission channel appears to be trade linkages, although direct financial linkages are playing an increasing role.",
  "sections": [
    {
      "heading": "Authors and publication",
      "content": "- By Serkan Arslanalp, Wei Liao, Shi Piao\n- August 12, 2016\n- IMF Working Papers, Working Paper No. 2016/173, Issue: 173, Volume: 2016\n- Pages: 37\n- DOI: https://doi.org/10.5089/9781475525137.001\n- ISBN: 9781475525137\n- ISSN: 1018-5941\n- Stock No: WPIEA2016173"
    },
    {
      "heading": "Key findings",
      "content": "- Financial spillovers from China to regional markets are on the rise.\n- The main transmission channel appears to be trade linkages.\n- Direct financial linkages are playing an increasing role.\n- Without an impact on global risk premiums, China’s influence on regional markets is not yet to the level of the United States, but comparable to that of Japan.\n- If China-related shocks are coupled with a rise in global risk premiums, as in August 2015 and January 2016, spillovers to the region could be significantly larger."
    },
    {
      "heading": "Transmission channels and mechanisms",
      "content": "- Trade linkages: identified as the primary channel for China-originated financial spillovers to regional markets.\n- Direct financial linkages: increasing importance as China’s financial integration deepens.\n- Global risk premiums: act as an amplifier—China-related shocks coupled with increases in global risk premiums lead to much larger regional spillovers (illustrated by August 2015 and January 2016 episodes)."
    },
    {
      "heading": "Medium-term outlook and drivers",
      "content": "- Over the medium term, China’s financial spillovers could rise further with tighter financial linkages with the region.\n- Specific drivers noted:\n  - Ongoing internationalization of the renminbi.\n  - China’s capital account liberalization."
    },
    {
      "heading": "Subject areas and keywords (as provided)",
      "content": "- Subject: Currency markets, Emerging and frontier financial markets, Financial markets, Financial sector policy and analysis, Global financial crisis of 2008-2009, Securities markets, Spillovers, Stock markets\n- Keywords: Asia and Pacific, center, center economy, China, Currency markets, Emerging and frontier financial markets, Equity markets, equity price, Foreign Exchange Markets, Global, growth outlook, market, market movement, Securities markets, spillover coefficient, Spillovers, Stock markets, trade linkage, WP\n\nThis summary is based on the IMF Working Paper \"China’s Growing Influence on Asian Financial Markets\" (Working Paper No. 2016/173).\n\n---\n\n Content in this bundle\n\n- China’s Growing Influence on Asian Financial Markets\n  - China’s Growing Influence on Asian Financial Markets (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - China’s Growing Influence on Asian Financial Markets (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/chinas-growing-influence-on-asian-financial-markets-44187"
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    "Authors: Serkan Arslanalp, Wei Liao, Shi Piao",
    "Published: August 12, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475525137.001",
    "By Serkan Arslanalp, Wei Liao, Shi Piao",
    "August 12, 2016",
    "IMF Working Papers, Working Paper No. 2016/173, Issue: 173, Volume: 2016",
    "Pages: 37",
    "DOI: https://doi.org/10.5089/9781475525137.001",
    "ISBN: 9781475525137",
    "ISSN: 1018-5941",
    "Stock No: WPIEA2016173",
    "Financial spillovers from China to regional markets are on the rise.",
    "The main transmission channel appears to be trade linkages.",
    "Direct financial linkages are playing an increasing role.",
    "Without an impact on global risk premiums, China’s influence on regional markets is not yet to the level of the United States, but comparable to that of Japan.",
    "If China-related shocks are coupled with a rise in global risk premiums, as in August 2015 and January 2016, spillovers to the region could be significantly larger.",
    "Trade linkages: identified as the primary channel for China-originated financial spillovers to regional markets.",
    "Direct financial linkages: increasing importance as China’s financial integration deepens.",
    "Global risk premiums: act as an amplifier—China-related shocks coupled with increases in global risk premiums lead to much larger regional spillovers (illustrated by August 2015 and January 2016 episodes).",
    "Over the medium term, China’s financial spillovers could rise further with tighter financial linkages with the region.",
    "Specific drivers noted:",
    "Subject: Currency markets, Emerging and frontier financial markets, Financial markets, Financial sector policy and analysis, Global financial crisis of 2008-2009, Securities markets, Spillovers, Stock markets",
    "Keywords: Asia and Pacific, center, center economy, China, Currency markets, Emerging and frontier financial markets, Equity markets, equity price, Foreign Exchange Markets, Global, growth outlook, market, market movement, Securities markets, spillover coefficient, Spillovers, Stock markets, trade linkage, WP",
    "**China’s Growing Influence on Asian Financial Markets**"
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