Fuzzy nonlinear dynamic similarity analysis of Chinese stock markets during 2007–2009 financial crisis

With the continuous development of the economic globalization and liberalization, the financial crisis is obviously prone to erupting and becoming highly linked and destructive. It´s of great significance to predict the spread arriving time window and block the crisis across countries by exploring the features and mechanism of financial crisis and financial contagion. Fuzzy dynamic similarity index algorithm is a nonlinear method of computation. It is possible to compare the dynamics of pre-crisis period with the reference period and based on which crisis arriving time window is predicted. We propose the empirical results based on 2007-2009 global financial crisis and provide significant insights into the dynamics of the interacting financial markets. The outcomes of the research will help in gaining a sound understanding of the dynamics of the financial markets.