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Japanese And Chinese Stock Market Behaviour In Comparison – An Analysis Of Dynamic Networks, Jan Hendrik Schuenemann, Natalia Ribberink, Natallia Katenka

Computer Science and Statistics Faculty Publications

Driven by the advancement of technology, emergence of financial institutional bodies superseding geographical constraints, as well as cross-regional liberalization paired with the removal of restrictions, global stock markets tend to become increasingly interconnected. On the one hand, it is believed that the globalization has made stock markets more efficient and alleviated the inherent risk thereof, resulting from greater access to financial assets, and thus the possibility to diversify therein. On the other hand, this may, however, lead to increased stock price volatility and trading instability, due to the major stock markets being increasingly correlated. Increasing interconnectedness between companies leads to …