Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in China
We examine whether gold and China’s government bonds are safe-haven assets against the turbulence of the Shanghai Stock Exchange Composite Index by employing vine copula models during the 2003 to 2015 period. We find that either bonds or gold can be a weak safe haven but only gold can be a strong sa...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
SAGE Publishing
2021-01-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/2158244021990655 |
| _version_ | 1818333010034950144 |
|---|---|
| author | Wei Huang Meng-Shiuh Chang |
| author_facet | Wei Huang Meng-Shiuh Chang |
| author_sort | Wei Huang |
| collection | DOAJ |
| description | We examine whether gold and China’s government bonds are safe-haven assets against the turbulence of the Shanghai Stock Exchange Composite Index by employing vine copula models during the 2003 to 2015 period. We find that either bonds or gold can be a weak safe haven but only gold can be a strong safe haven. Our simultaneous analysis advises against a joint safe-haven strategy of gold and bonds, given the high- to low-tail correlation. This result highlights an investment strategy of using a single safe-haven asset against the Chinese stock market turbulences. |
| first_indexed | 2024-12-13T13:44:50Z |
| format | Article |
| id | doaj.art-818bee812db440b9b47912f658fed6d1 |
| institution | Directory Open Access Journal |
| issn | 2158-2440 |
| language | English |
| last_indexed | 2024-12-13T13:44:50Z |
| publishDate | 2021-01-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | SAGE Open |
| spelling | doaj.art-818bee812db440b9b47912f658fed6d12022-12-21T23:43:27ZengSAGE PublishingSAGE Open2158-24402021-01-011110.1177/2158244021990655Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in ChinaWei Huang0Meng-Shiuh Chang1Jiangxi University of Finance and Economics, Nanchang, ChinaHubei University, Wuhan, ChinaWe examine whether gold and China’s government bonds are safe-haven assets against the turbulence of the Shanghai Stock Exchange Composite Index by employing vine copula models during the 2003 to 2015 period. We find that either bonds or gold can be a weak safe haven but only gold can be a strong safe haven. Our simultaneous analysis advises against a joint safe-haven strategy of gold and bonds, given the high- to low-tail correlation. This result highlights an investment strategy of using a single safe-haven asset against the Chinese stock market turbulences.https://doi.org/10.1177/2158244021990655 |
| spellingShingle | Wei Huang Meng-Shiuh Chang Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in China SAGE Open |
| title | Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in China |
| title_full | Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in China |
| title_fullStr | Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in China |
| title_full_unstemmed | Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in China |
| title_short | Gold and Government Bonds as Safe-Haven Assets Against Stock Market Turbulence in China |
| title_sort | gold and government bonds as safe haven assets against stock market turbulence in china |
| url | https://doi.org/10.1177/2158244021990655 |
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