The International Monetary Fund has released its new Global Financial Stability Report, highlighting the spillover effect from the emerging market economies within the global financial market.

The report says changes in emerging market asset prices explain over a third of the rise and fall in global equity prices and exchange rates.

The IMF also states that Chinese economic growth has had an increasing impact on global stock prices in the past five years.

It warns that China's spillover effect to global financial markets is likely to increase in the future.

The IMF has called for greater policy cooperation in view of the rising financial integration of emerging market economies into the global market.

Meanwhile, it also suggests that each country should open a database of cross-border banking flows.