Post-spillover effects of China's integration on Pakistan Stock Exchange

The Pakistan Stock Exchange (PSX) strategic partnership with the Chinese consortium shifted trends and transition patterns from global to Chinese exchanges. Any substantial changes in these markets created a significant impact on the PSX. After the partnership with the Chinese consortium, Pakistan's mean returns and price volatility dynamics have shifted toward the regional exchanges, connectivity, and alliances, which has increased regional integration. Any systematic change in trading policies and framework of partner exchanges may substantially impact the trading dynamics and volume of the Pakistan stock market and local investors. This changing behavior will enhance financial synergies in the Pakistan stock markets trading capacity by bringing Chinese cross-listed IPOs and portfolio investment and financial vulnerabilities in exchange rate risk and volatility spillover effects from partner exchanges.