Structural breaks, dynamic correlations, and hedge and safe havens for stock and foreign exchange markets in Greater China
This study investigates the dynamic relationship and hedging strategy between stock and foreign exchange markets in Greater China for the period 22 July 2005 to 30 November 2015. Using the DCC‐GARCH model with and without structural breaks, the results provide strong evidence of negative time‐varying correlations between these two markets in Greater China, consistent with the “stock‐oriented” models of exchange rates. Moreover, adding structural breaks reduces the degree of volatility persistence for all considered markets and can provide more accurate hedge and safe haven properties of the US dollar against Greater China stock markets. The findings have several important implications for portfolio risk managers, international investors and policymakers.
Based on statistical analysis,the paper stems from two aspects: First,exploring the monitoring method to operational state of county economy;second,establishing development evaluation system of county economy to research county economy of Hubei province.With the example of "1+8"City Circle,the paper explains the research approach and evaluation criterion of County economic operation of Hubei Province.Finally,the paper points out some deficiencies to the construction of "1+8"City Circle and puts forward some suggestions to the development of county economy.