Analysis Of Linkage Effects Among Industry Sectors In China's Stock Market Based On The Theory Of Complex Networks

China's stock market has a feature of "policy market". The main reason of this phenomenon is that the government plays a dominant role on the development and actual operation of stock market, many investors try to follow suit and herding in the stock market. Therefore, stock prices often rise and fall together. Accordingly, the paper choose the linkage effects among industry sec tors in China's stock market as the research object.The essence of the linkage effects among industry sectors in stock market is a stock price phenomenon, specifically refers to the existence of common fluctuation relationship between the industry sectors, which has a consistent trend of change and development. In the different stages of economic development in our country, the industry linkage effects in the stock market presents different characteristics. Theoretically, the industry linkage effects affected by industrial correlation mechanism in the long run, in the short term is mainly affected by the impact of information overflow.This paper constructed the network of linkage effects among industry sectors in China's stock market by using the complex network theory, analyze the industry agglomeration effects comparatively, to clarify the relationship of industry index in China's stock market.The industry linkage network figure shows that the downstream industries and mostly traditional production and con sumption sectors such as textiles and clothing, machinery, retail trade is the important member of the industry index linked network, also with a strong influence in the network system. Empirical study from the practical data of China's stock market is foc used on the characteristics and periodic change rule. Firstly, using the complex network model of minimum spanning tree(MST) and hierarchical tree(HT) diagram to analyze the changes of network structure of stock market industry index, the results indicate that the occurrence of financial crisis makes the linkage effects of China's industry stock index become more significant, but after the financial crisis it return to the previous level of relevance, and the central node has weakened. Secondly, using QAP measurement method to analyze how the real economy make effects on the stock market. The data of the real economy comes from input-output complete consumption coefficient table.The result indicates that industrial connection have an influence on the stoc k market which also exists lag effect. Finally, analyzing information overflow by using Baidu index.The results show that in the short-term the industry linkage effects enhanced due to the public attention.Based on the above theoretical and empirical analysis, China should continue to improve the basic system of the stock market, strengthen the education and guidance of investors, ultimately realizes the policy goals of promote the development of stock market in a normative way.