Financial Integration and Volatility Spillovers: Examining China's Linkages with Emerging Economies

The goal of the study is to examine the Chinese stock market's volatility and how it affects particular emerging economies. The study examines stock index returns from Brazil, Indonesia, Mexico, Malaysia, Thailand, the Philippines, and Pakistan using secondary data to assess market integration and volatility spillovers. The results of Ordinary Least Squares (OLS) regression and cointegration analysis demonstrate a high degree of interdependence between the selected emerging markets and the Chinese stock market. The analysis and outcomes explained that China's volatility shocks have measurable effects on these economies and highlight financial connections and potential contagion risks. The study has long-term implications for global financial stability and economic decision-making, also these findings have significant implications for businesses, investors, and politicians.