| The opening of Shanghai-Hong Kong Stock Connect program and Shenzhen-Hong Kong Stock Connect program has brought a tremendous impact on China's stock market.After the opening of Shanghai-Hong Kong Stock Connect program,the funds coming from Shanghai and Shenzhen can flow into Hong Kong market,and the funds coming from Hong Kong can flow into Shanghai for buying and selling of stocks as the same way.This kind of flows of funds between domestic and foreign market will have a major impact on the stability of these stocks.And it is the purpose of research in this paper:comparing the differences of the stability of stocks which changes before and after the opening of Shanghai-Hong Kong Stock Connect program and Shenzhen-Hong Kong Stock Connect program to analyze the influence coming from its opening,and also the influence on the stability of stock market coming from the foreign and domestic funds' flowing in and out.This paper adopts the theory of complex network,and by combing the literature before.This paper choose the appropriate modeling method to establish stock price networks for the object stocks'different periods of Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect program in the three stock markets,and then compared and analyzed the networks' structure,topology and stability.This paper finds that:(1)After the opening of Shanghai-Hong Kong Stock Connect program,the stock price network of the object stocks in Shanghai and Hong Kong stock market has a more widely degree distribution and strength distribution than before,but it is more obvious in the stock price network of the object stocks in Shanghai.This discovery illustrates that the networks'structures of the stock price network of the object stocks in Shanghai and Hong Kong become more and more relative after the opening of Shanghai-Hong Kong Stock Connect program,but the edges of nodes are distributed evenly before the opening of Shanghai-Hong Kong Stock Connect program,which indicated that its structure dispersed.(2)After the opening of Shenzhen-Hong Kong Stock Connect program,the stock price network model of the object stocks in Shenzhen stock market also has the same changes,which indicated that the stock price network of the object stocks in Shenzhen and Hong Kong stock market becomes more relative.Its appearance is that after the opening of Shenzhen-Hong Kong Stock Connect program,it has a more widely degree distribution and strength distribution than before.In contrast,the stock price network of the object stocks in Hong Kong stock market has little change at the same time.(3)Whether before and after the opening of Shanghai-Hong Kong Stock Connect program or before and after the opening of Shenzhen-Hong Kong Stock Connect program,the stock network structure has a certain ability to disperse the risk.If in the preliminary stage,some original fluctuations are given to these nodes,theirs fluctuations will tend towards 0 with the time going.(4)After the opening of Shanghai-Hong Kong Stock Connect program,the ability to disperse the risk of the stock price network of the object stocks in Shanghai and Hong Kong stock market reduced,it needs much more long time to tend towards 0,which indicated that the stock network structures of the stock price network of the object stocks in Shanghai and Hong Kong stock market become more uncorrelated,and the systemic risk increased after the opening of Shanghai-Hong Kong Stock Connect program and could not quickly digest the external disturbance.(5)After the opening of Shenzhen-Hong Kong Stock Connect program,the ability to disperse the risk of the stock price network of the object stocks in Shenzhen and Hong Kong stock market reduced,which indicated that the stock network structures of the stock price network of the object stocks in Shenzhen and Hong Kong stock market become more uncorrelated,the systemic risk increased after the opening of Shenzhen-Hong Kong Stock Connect program and could not quickly digest the external disturbance. |
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