Logistics and stock market inter-dependence: the case of China

The inter-dependence between different stock marketsaround the world has been in the forefront of academic and public interests. In this paper, we study the channel of the stock marketinter-dependence between Chinese stock marketand other markets around the world. We analyse the daily returns of major stockindices to discover the path of the transmission of shocks from Chinese stock market. We find out that, the difference in logistics from countries plays an important role in explaining the transmission of stock marketshocks.