Summary of China’s Growing Influence on Asian Financial Markets

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

China’s Growing Influence on Asian Financial  Markets summary
Start getting smarter:
or see our plans


7 Overall

8 Importance

7 Innovation

6 Style


Whether it’s rattling financial markets or swaying commodity prices, China is a powerful pacesetter in the Asian regional economy. Trade interconnections form the main routes for the cascading economic effects that occur between China and its neighbors, although growing financial system ties among Asian nations also play a part, according to economists Serkan Arslanalp, Wei Liao, Shi Piao and Dulani Seneviratne. Their study presents ideas on how countries in the region can mitigate the amplified risks of destabilization from ever-increasing linkages. getAbstract recommends their comprehensive report to policy makers, executives and investors concerned about the impacts of China-related shocks.

In this summary, you will learn

  • How economic disturbances in China affect other Asian economies,
  • What factors contribute to the spread of China-related shocks and
  • What nations in the region can do to mitigate destabilizing events.

About the Authors

Serkan Arslanalp, Wei Liao, Shi Piao and Dulani Seneviratne are economists at the International Monetary Fund.



China is undergoing a massive economic transformation as it seeks to reduce its reliance on exports and manufacturing and to emphasize service sectors and domestic consumption. Research suggests that “financial spillovers” – which occur when a disturbance in one market influences asset valuations in other markets – from China to other parts of Asia were increasing before the middle of 2015 but became more extensive afterward. Several factors underlie China’s huge regional influence:

  • “Direct trade linkages” – Changes in the Chinese economy affect...

More on this topic

By the same authors

Resolving China’s Corporate Debt Problem

Customers who read this summary also read

A Ride in Rough Waters
World Economic Outlook October 2016
World Economic Outlook April 2016
A Middle Ground
Watch Out World, Here Come Chinese Government Bonds
Capital Slowdown

Related Channels

Comment on this summary