Research On Structural Characteristics And Crisis Spreading In The Complex Networks Of Chinese Stock Markets

As we all know, the stock market is a barometer of the national economic development. Once some abnormal phenomena occur in the stock market, the real economy of the country will be inevitably and seriously affected. This abnormality in stock market is easy to trigger a global financial crisis or economic crisis. Therefore, studying on the structural characteristics of stock market and the crisis spreading in the stock markets is important.Based on systematically analyzing the theory of complex networks, reviewing and summarizing the existing research productions in China and abroad, the theory of complex networks is used to analyze Chinese stock markets. On the basis of transaction data in Shanghai Stock Exchange and Shenzhen Stock Exchange, many empirical studies have been done. The crisis spreading of Susceptible-Infected-Removed (SIR) model based on the correlated networks of listed company and their main holders is established and researched in details. I have researched the topological characteristics of the correlated networks of the mutual investment relationships, Hub vertices, rich-club, the community structure and robustness of the correlated networks of listed companies and their main holders, the abnormal phenomena in stock market induced by Hub vertices. In addition, the effect of the Strategies of the Development of the West Regions and the Rejuvenation of Old Industrial Bases in Northeastern China, the influence of the state-owned large and medium enterprises listing frequently on Chinese stock markets and the relationships of the domestic mutual investment of China also have been researched.Firstly, the entry point of this research is the cross-shareholding networks among the listed companies. It is proved that the cross-shareholding networks are sparse scale-free networks, and there are relatively more Hub vertices in the networks. At the same time, the networks show the phenomena of resources’re-arrangement. The mutual investments networks among the provinces and the regions in China mainland have been established based on the cross-shareholding networks among the listed companies. Through the hierarchical cluster analysis and drawing the networks, I find that the wealth gap between the North and the South isn’t decreased by implementing the macroeconomic policies both at province-level and region-level. Meanwhile, the shifted wealth makes some developed provinces and regions richer.Secondly, in order to research the Hub vertices and the rich-clubs in Chinese stock markets, with all common listed stocks in Shanghai Stock Exchange as subject, characteristics of rich-clubs in stock markets are studied in the view point of complex networks. The abnormal phenomena caused by the failure of the Hub nodes is diagnosed and analyzed. It’s proved that Hub vertices and rich-clubs in stock markets are direction indicators of stock markets and their healthy or not have significant impact on the general trends of stock markets.Thirdly, the correlated networks of listed companies and their main holders are established. Based on the analysis of topological characteristics and community structures under3-cliques of the networks from2003to2009by the weighted clique percolation method, I find that some super-scale stated-owned enterprises could become to hub vertices as soon as possible after they listed on the stock markets in2006and2007. They induced the networks resources’re-arrangement. The phenomenon of resources’rearrangement is just consistent with the fluctuations of the scale-free indices. At the same time, the large investment relationships between the large companies and their main holders are researched by removing methods. It’s proved that some large-scale listed companies not only have succeeded to undergo the economic crisis and developed healthily, but also they have strengthened the mutual investment relationships among the previous listed companies and big holding companies. And then I have researched the robustness of the correlated networks when the networks meet random failures and intentional attacks. I find that the whole networks have good robustness to the random failures and the have obviously vulnerability to the intentional attacks.Finally, the crisis spreading in the correlated networks is studied to reveal the mutual influences between listed companies and their main holders because of the broken financing chain when the networks meet random failures or intentional attacks as mentioned above. The crisis spreading model of susceptible-Infected-Removed (SIR) is established. The numerical computation method has successfully used to analyze the crisis spreading in the correlated networks of listed companies and their main holders established in previous section. The results reveal that the crisis spreads in a rapid speed and produces quite a lot of damages when the Hub vertices are intentionally attacked. It mainly attributes to that most of the Hub vertices represent the enterprises in the sector of Finance and Insurance, and some super-scale companies. The relationships among them and the other large-scale listed companies and the holding companies are quite close. At the same time, these companies are indispensable for our life. Once these companies go bankrupt, the public opinions will accelerate the crisis spreading. And then the phenomenon of domino effect may appear easily. Correspondingly, an economic crisis takes place.