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This paper employs the multifractal detrended cross-correlation analysis (MF-DCCA) model to estimate the nonlinear relationship between the money market rate and stock market liquidity in China from a multifractal perspective, leading to a better understanding of the complexity in the relationship between the interest rate and stock market liquidity. The empirical results show that the cross-correlations between the money market rate and stock market liquidity present antipersistence in the long run and that they tend to be positively persistent in the short run. The negative cross-correlations between the interest rate and stock market liquidity are more significant than the positive cross-correlations. Furthermore, the cross-correlations between the money market rate and stock market liquidity display multifractal characteristics, explaining the variations in the relationship between the interest rate and stock market liquidity at different time scales. In addition, the lower degree of multifractality in the cross-correlations between the money market rate and stock market liquidity confirms that it is effective for the interest rate to control stock market liquidity. The Chinese stock market liquidity is more sensitive to fluctuations in the money market rate in the short term and is inelastic in response to the money market rate in the long term. In particular, the positive cross-correlations between the money market rate and stock market liquidity in the short run become strong in periods of crises and emergencies. All the evidence proves that the interest rate policy is an emergency response rather than an effective response to mounting concerns regarding the economic impact of unexpected exogenous emergencies and that the interest rate cut policy will not be as effective as expected.

The rapid economic development and high incidence of crises in emerging economies make them play an increasingly important role in the transmission of global financial risks. As a new trend in the development of the financial industry, the development of green finance also indicates the direction of the future development of the financial industry. Faced with the increasingly concerned environmental issues, it is necessary for emerging economies, mainly represented by developing countries, to learn from the experience of developed countries in this field. In this paper, principal component analysis (PCA) and factor analysis (FPM) are applied to study the factors influencing financial fragility of emerging economies at different stages of development, and then the degree of fragility is analyzed and compared. The empirical results show that there are differences in the influencing factors of financial fragility in emerging economies at different stages of development. For middle- and low-income economies, credit security, social stability and the development of capital market are the priorities they should consider at present. For the Middle- and high-income economies, we should be alert to the malignant changes in a certain indicator. For high-income economies, macroeconomic stability is the focus of their financial security. The research results provide a basis for the emerging economies to reduce economic vulnerability according to local conditions, which is of great significance to avoid the outbreak of global financial crisis.

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