|Researchers:||Mucai Lin, LinLin Niu|
|Category:||Financial Markets, Macro Finance|
|Funded by:||Volkswagen Stiftung|
Although China still has capital market controls accompanying the managed floating exchange rate, China's financial market has been more and more integrated to the world financial market through information spillovers and steady (though restricted) capital flows over the border. The US Quantitative Easing has been found to spill over to the rest of the world but little is known on its impact on China. This project focuses on the reaction of the Chinese yield curve to US Quantitative Easing, using event study as well as VAR analysis.