arbiter
JournalsAccount

Sector‐Specific Exchange Rate Movements in Hong Kong Stock Market

Nazif Durmaz et al.

Australian Economic Papers2025https://doi.org/10.1111/1467-8454.70008article
AJG 1ABDC B
Weight
0.37

Abstract

The present paper empirically examines the effects of exchange rate movements in Hong Kong's stock market using both linear ARDL and nonlinear NARDL models. Using quarterly data between 2005 and 2024 for 10 sector‐specific industries, our findings reveal significant and asymmetric effects of currency appreciation and depreciation across various industries. Sectors such as finance, healthcare, consumption, and energy exhibit high sensitivity to exchange rate movements, influenced by trade exposure and macroeconomic conditions. The study underscores the necessity of nonlinear models to capture the complex interactions between exchange rates and equity markets. Additionally, macroeconomic variables play crucial roles in determining stock market performance, highlighting the multifaceted nature of financial market behavior in an open economy like Hong Kong. These insights extend the empirical literature and offer practical guidance for investors and policymakers, emphasizing the need for sector‐specific risk management strategies, targeted policy support, and enhanced macroeconomic coordination to mitigate the adverse effects of currency volatility and bolster Hong Kong's financial system against global economic shifts.

1 citation

Open via your library →

Cite this paper

https://doi.org/https://doi.org/10.1111/1467-8454.70008

Or copy a formatted citation

@article{nazif2025,
  title        = {{Sector‐Specific Exchange Rate Movements in Hong Kong Stock Market}},
  author       = {Nazif Durmaz et al.},
  journal      = {Australian Economic Papers},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/1467-8454.70008},
}

Paste directly into BibTeX, Zotero, or your reference manager.

Flag this paper

Sector‐Specific Exchange Rate Movements in Hong Kong Stock Market

Flags are reviewed by the Arbiter methodology team within 5 business days.

Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.