Geopolitical risk and economic policy uncertainty: Different roles in China's financial cycle

Chen, Ming; Zhu, Zixiang; Li, Yujia

doi:10.1016/j.irfa.2023.102867

Cited by 10 publications

(1 citation statement)

References 51 publications

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“…First, China's green finance stock industry index (GS), coming from Wind database, is utilized to replace the green bond index, which covers firms in banking, environmental protection and other fields (Su et al, 2023). Second, different from the previous EU index, this paper uses the new economic policy uncertainty (EU * ) index, which is measured by two newspapers from mainland China, namely, Renmin Daily and Guangming Daily, and is obtained from http://www.policyuncertainty.com (Che et al, 2023). Third, the WTI oil price is replaced by a new oil price (OP * ), which is the average price of the WTI, Brent and Dubai Fateh, and is collected from the International Monetary Fund (Wang & Liao, 2022).…”

Section: Robustness Testmentioning

confidence: 99%

Bitcoin Price and Chinese Green Bonds: Evidence From the Qardl Method

Wang,

Wen,

Zhang

et al. 2024

TEDE

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This article primally explores the short-term fluctuation and long-term implications of the international Bitcoin price (BP) on the Chinese green bond (GB) market, within the sample period of 2014:M10–2023:M07. Bitcoin is the most important cryptocurrency and has a carbon-intensive feature, and its price suffers from great volatility and is closely related to the green finance market. Meanwhile, although China is the largest bitcoin mining state, it is pursuing a dual carbon target, which promotes its green bond market’s development. Thus, it is valuable to investigate the influence of BP on GBs in China. Based on the quantile autoregressive distributed lag approach, this paper indicates that the positive and negative impacts of BP on the GB market are significant in the long-term but not apparent in the short-term. These results emphasize the importance for market participants to obtain a better understanding of how BP affects GB under various market circumstances. Implementing specific policies, such as regulatory mechanisms for Bitcoin trade, market-oriented reform for the bond market, and information disclosure, can alleviate shocks from BP and accelerate the development of the GB market.

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Section: Robustness Testmentioning

confidence: 99%