A Study on Dynamic Relationship between Macroeconomic Variables and Stock Markets in the United States, Germany, and Hong Kong

2016 ◽  
Author(s):  
Taibo Mu
Keyword(s):  
United States ◽  
Hong Kong ◽  
Stock Markets ◽  
The United States ◽  
Macroeconomic Variables ◽  
Dynamic Relationship

VOLATILITIES AND RETURN CO-MOVEMENTS AMONG STOCK MARKETS IN MAINLAND CHINA, HONG KONG, AND THE UNITED STATES

2021 ◽  
pp. 1-22
Author(s):  
WEIJIE HOU ◽  
BAISHENG CUI ◽  
YUPING SONG ◽  
YING CHEN
Keyword(s):  
United States ◽  
Hong Kong ◽  
Stock Markets ◽  
Mainland China ◽  
The United States ◽  
Investment Environment ◽  
Financial Investment ◽  
Return Rates ◽  
Economic Ties ◽  
Hot Money

Along with the international trade and economic ties, international stock markets are performing increasingly closely. This paper investigates the volatilities and the return co-movements among three stock markets in mainland China, Hong Kong, and the United States, from January 1, 2007, to July 5, 2019. We use the MIDAS framework to separately characterize short-term and long-term features. The results reveal that different market volatilities have different sensitivities to the same events. After the second half of 2016, the volatility of China’s stock market gradually dropped below that of the other two markets. As for market co-movements, the return correlation between China and Hong Kong rose sharply after 2007. Although the co-movements for return rates among these three stock markets possess mutual dynamic synchronization features, deviations exist occasionally due to the emotional transfer of funds in the international market when a significant economic or financial event occurs. The analysis suggests that countries should stabilize the financial investment environment and guard against hot money activities.

DO MONEY AND INTEREST RATES MATTER FOR STOCK PRICES? AN ECONOMETRIC STUDY OF SINGAPORE AND USA

2006 ◽  
Vol 51 (01) ◽  
pp. 31-51 ◽  
Author(s):  
WING-KEUNG WONG ◽  
HABIBULLAH KHAN ◽  
JUN DU
Keyword(s):  
United States ◽  
Interest Rate ◽  
Money Supply ◽  
Stock Prices ◽  
Stock Markets ◽  
The United States ◽  
Asian Crisis ◽  
Macroeconomic Variables ◽  
Equilibrium Relationships ◽  
The Stability

This paper examines the long-term as well as short-term equilibrium relationships between the major stock indices and selected macroeconomic variables (such as money supply and interest rate) of Singapore and the United States by employing the advanced time series analysis techniques that include cointegration, Johansen multivariate cointegrated system, fractional cointegration and Granger causality. The cointegration results based on data covering the period January 1982 to December 2002 suggest that Singapore's stock prices generally display a long-run equilibrium relationship with interest rate and money supply (M1) but a similar relationship does not hold for the United States. To capture the short-run dynamics of the relationship, we replicate the same experiments with different subsets of data representing shorter time periods. It is evident that stock markets in Singapore moved in tandem with interest rate and money supply before the Asian Crisis of 1997, but this pattern was not observed after the crisis. In the United States, stock prices were strongly cointegrated with macroeconomic variables before the 1987 equity crisis but the relationships gradually weakened and totally disappeared with the emergence of Asian Crisis that also indirectly affected the United States. The results of fractional cointegration and the Johansen multivariate system are consistent with the earlier cointegration results that both Singapore and US stock markets did possess equilibrium relationships with M1 and interest rate at the early days. However, the stability of the systems was disturbed by a series of well-known financial turbulence in the past two decades and eventually weakened for Singapore and completely disappeared for the US. This may imply that monetary authority may take action to respond to the asset price turbulence in order to maintain the stability of monetary economy and thus break the existing equilibrium between stock markets and macroeconomic variables like interest rate and M1. Another possible explanation is that the market became more efficient after 1997 Asian crisis. Finally, the results of Granger causality tests uncover some systematic causal relationships, implying that stock market performance might be a good gauge for Central Bank's monetary policy adjustment.

Integration to Inclusion in Hong Kong: Not an Easy Progression

2021 ◽  
pp. 1-13
Author(s):  
Peter Westwood
Keyword(s):  
United States ◽  
Hong Kong ◽  
Inclusive Education ◽  
The United States ◽  
Academic Standards ◽  
Education Policies ◽  
Negative Attitudes ◽  
Large Class Size ◽  
Inclusive Schooling ◽  
Education In Hong Kong

Abstract This article describes the evolution of inclusive education in Hong Kong, moving from segregation via integration to inclusion. The outside influence of education policies and trends from Britain, Australia, and the United States are identified, and the current situation is described. In particular, obstacles that are encountered on the route to inclusion are compared with those found in other countries. These obstacles include large class size, teachers’ often negative attitudes, parents’ expectations, teachers’ lack of expertise for adapting the curriculum and for providing differentiated teaching, and ongoing conflicts between the notion of ‘inclusive schooling for all’ and the ‘academic standards agenda’.

Do Stock Markets Catch the Flu?

2013 ◽  
Vol 48 (3) ◽  
pp. 979-1000 ◽  
Author(s):  
Brian C. McTier ◽  
Yiuman Tse ◽  
John K. Wald
Keyword(s):  
United States ◽  
New York ◽  
New York City ◽  
Stock Markets ◽  
The United States ◽  
Trading Activity ◽  
Market Makers ◽  
International Data ◽  
The Impact ◽  
Bid Ask Spreads

AbstractWe examine the impact of influenza on stock markets. For the United States, a higher incidence of flu is associated with decreased trading, decreased volatility, decreased returns, and higher bid-ask spreads. Consistent with the flu affecting institutional investors and market makers, the decrease in trading activity and volatility is primarily driven by the incidence of influenza in the greater New York City area. However, the effect of the flu on bid-ask spreads and returns is related to the incidence of flu nationally. International data confirm our findings of a decrease in trading activity and returns when flu incidence is high.

Contemporary Practice of the United States Relating to International Law

1997 ◽  
Vol 91 (3) ◽  
pp. 493-517
Author(s):  
Marian Nash (Leich)
Keyword(s):  
United States ◽  
Hong Kong ◽  
Law Enforcement ◽  
International Law ◽  
The United States ◽  
People’S Republic Of China ◽  
People's Republic Of China ◽  
Republic Of China ◽  
The Government ◽  
Contemporary Practice

On March 3,1997, President William J. Clinton transmitted to the Senate for its advice and consent to ratification as a treaty the Agreement Between the Government of the United States of America and the Government of Hong Kong for the Surrender of Fugitive Offenders, signed at Hong Kong on December 20,1996. In his letter of transmittal, President Clinton pointed out that, upon its entry into force, the Agreement would “enhance cooperation between the law enforcement communities of the United States and Hong Kong, and … provide a framework and basic protections for extraditions after the reversion of Hong Kong to the sovereignty of the People’s Republic of China on July 1, 1997.” The President continued: Given the absence of an extradition treaty with the People’s Republic of China, this Treaty would provide the means to continue an extradition relationship with Hong Kong after reversion and avoid a gap in law enforcement. It will thereby make a significant contribution to international law enforcement efforts.The provisions of this Agreement follow generally the form and content of extradition treaties recently concluded by the United States. In addition, the Agreement contains several provisions specially designed in light of the particular status of Hong Kong. The Agreement’s basic protections for fugitives are also made expressly applicable to fugitives surrendered by the two parties before the new treaty enters into force.

scholarly journals Unknown Unknowns: Uncertainty About Risk and Stock Returns

2018 ◽  
Vol 53 (4) ◽  
pp. 1615-1651 ◽  
Author(s):  
Guido Baltussen ◽  
Sjoerd van Bekkum ◽  
Bart van der Grient
Keyword(s):  
United States ◽  
Stock Returns ◽  
Stock Prices ◽  
Stock Markets ◽  
The United States ◽  
Pricing Mechanism ◽  
European Stock Markets ◽  
Low Uncertainty ◽  
High Uncertainty

Stocks with high uncertainty about risk, as measured by the volatility of expected volatility (vol-of-vol), robustly underperform stocks with low uncertainty about risk by 8% per year. This vol-of-vol effect is distinct from (combinations of) at least 20 previously documented return predictors, survives many robustness checks, and holds in the United States and across European stock markets. We empirically explore the pricing mechanism behind the vol-of-vol effect. The evidence points toward preference-based explanations and away from alternative explanations. Collectively, our results show that uncertainty about risk is highly relevant for stock prices.

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