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Volume:7, Issue :1
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Journal of European Economic History
2026, Volume:7, Issue :1 : 150-160 doi: https://doi.org/10.61336/JEEH/26-1-13
Research Article
Integration and Linkages between Indian and Chinese Stock Markets on the prospect of diversification opportunities
 ,
1
Assistant Professor, Christ University, Bangalore
Abstract

Diversification is the key to the management of portfolio risk without adversely affecting return. International investing offers potential return opportunities and risk reduction through international portfolio diversification, to investigate it linkages and integration among stock markets have major role. The study checks the possible diversification opportunities between Indian and Chinese Stock market and tried to detect integration and linkages between these stock markets taking sample of Nifty 50 Index (India) and Shanghai Composite Index (China) spanning from the year 1995 till 2016. Accounting Structural break due to GFC 2007-08, analysis conducted for pre and post GFC and also incorporated dummy exogenous in some aspect. The model does not identify any long run integration between these pair of markets, but evidenced some short run linkages. Frequency domain analysis (Breitung and Candelon (2006)) captured the range of causality and bandwidth ranges of corresponding time periods.

 

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