Do the RMB exchange rate and global commodity prices have asymmetric or symmetric effects on China’s stock prices?

Abstract With the rapid expansion of RMB exchange rate’s floating range, effects rate and global commodity price changes on China’s stock prices are likely to increase. This study uses both auto regressive distributed lag (ARDL) nonlinear ARDL (NARDL) approaches explore symmetric asymmetric prices. Our findings show that without considering critical variable prices, there is no cointegration relationship between coefficient not statistically significant. However, when we introduce into NARDL model, result shows has a negative effect indeed exists long-run among rate, in have an long run. Specifically, more sensitive increases than decreases Thus, cause decline sharply. In contrast, same magnitude induces smaller increase