Comparison Among China Mainland,Hongkong And New York Stock Markets In Terms Of Connections Based On Wavelet Analysis

Nations and regions around the world close their economy correlation when the world is continuing its way on economy globalization.So does finance.This paper carries out research on stock markets,which is of the most important and hottest spot of finance. By doing comparison job among Shanghai, Shenzhen, Hongkong and New York stock markets using wavelet analysis.We find that Shanghai, Shenzhen, Hongkong, New York stock markets have both common grounds and differences in terms of stock cycle and they are different in terms of correlation coefficient.(1)In view of stock cycle,evident market period has been found in all above-mentioned stock markets. They all have a 1250 sessions in common. Shanghai and Shenzhen bear a great resemblance with each other while they have obvious difference with Hong kong and New York. Hongkong is astonishingly similar to New York.They both have a long stock cycle,which changes from 2500 sessions to 2000 sessions.(2)When it comes to correlation, Shanghai-Shenzhen have the top correlation coefficient followed by Hongkong-New York. Shanghai-Hongkong,Shanghai-New York, Shenzhen-Hongkong, Shenzhen-New York are about the same level. None of them correlate much.The stock market of China has been deepening their internationalization all the time especially after 2007 when the world economy crisis broke.Moreover,Hongkong and New York are leading China mainland in view of stock market changes.