Global financial markets are becoming increasingly intertwined. This column analyses the potential spillovers of shocks originating in China on the financial markets of emerging economies, distinguishing between disturbances stemming from monetary policy and those related to China's macroeconomic developments. The findings reveal that macroeconomic disturbances in China have significant lasting effects on financial variables of emerging economies, suggesting that such shocks could influence economic cycles and financial stability in those markets. In addition to equity markets, authors also quantify the impact that shocks originating in China have on key financial variables of other emerging economies. Results are very similar: the impact of macroeconomic shocks on the cost of sovereign external debt of these economies, as well as on their exchange rates versus the US dollar, is significant […]