This study examines the sustainability of financial integration between China (represented by Shenzhen and Shanghai) stock markets and Hong Kong stock market over the period of pre and post launch of the Stock Connect Scheme. This paper aims to fill the gap in the financial literature by providing empirical research on the dynamics of the financial integration process, and examining the sustainability of financial integration among the three Chinese stock markets. We apply cointegration and both linear and nonlinear causalities to investigate whether the Shanghai-Hong

This paper applies stochastic dominance techniques for income distribution analysis and develops tests of richness and poorness to achieve more accurate characterizations of relative welfare in populations than was previously possible. Results from our empirical application, using Hong Kong data, are consistent with predictions of the life-cycle theory of income and savings. Among other things, we find high concentrations of poor individuals among the younger cohorts, and at the same time, there are high concentrations of rich individuals amongst the oldest cohorts. Our results help to explain Hong Kong’s persistently high levels of income inequality in the population.

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