This paper investigates the dynamic conditional correlations (DCC) of stock returns between China and international markets. Statistics suggest that stock-return correlations across markets are time-varying, displaying a structural change triggered by an upward shift in China’s adoption of financial liberalization and the occurrence of the worldwide financial crisis. The dynamic correlations are closely tied to geographic location: the highest correlation is with Hong Kong, followed by Taiwan and Korea; the correlations with Europe and the US are low. The DCC series are negatively associated with the relative P/E ratios and are positively associated with the risk from the US market.