Abstract
From the perspective of equity holdings, this article selects the stock and equity data related to the financial sector in the Shanghai and Shenzhen securities markets in China, uses the bipartite network model to construct stock-shareholders associated network and performs a single-mode projection on the network to obtain the stock correlation network, further study the structure and financial nature of the network. The study found that in the stock-shareholders associated networks, minority shareholders hold a large number of stocks, which on the one hand illustrates the investment direction of major shareholders, and has become a vein for retail shareholders to invest in stocks; on the other hand, it is confirmed that the long-term and large-scale holding of major shareholders can stabilize the financial market to a certain extent. The weight and degree distribution of the stock correlation network are non-uniform, and many of the state-owned banks have higher weight values, which reflects the close relationship between state-owned banks. Finally, the shareholder’s holding behavior reflects that their identification with financial stocks in the A-share market tends to be consistent.
Highlights
Since the 2008 financial crisis, people have begun to pay attention to the study of financial markets, and there are more and more research methods on financial markets
The study found that in the stock-shareholders associated networks, minority shareholders hold a large number of stocks, which on the one hand illustrates the investment direction of major shareholders, and has become a vein for retail shareholders to invest in stocks; on the other hand, it is confirmed that the long-term and large-scale holding of major shareholders can stabilize the financial market to a certain extent
Yanfeng Sun and Chaoyong Wang (2018) defined a correlation coefficient based on textual mutual information, and compared with the traditional correlation coefficient method, they concluded that a network based on the correlation coefficient of textual mutual information can make the remaining nodes more connected and this method can effectively increase the importance of retaining nodes and dig out a better community structure [2]
Summary
Since the 2008 financial crisis, people have begun to pay attention to the study of financial markets, and there are more and more research methods on financial markets. A large number of scholars have used complex network methods to construct financial or stock networks, studying the relationship between various entities in the financial market and the spread of market risks. Yu Wang and Xinrong Xiao et al (2019) combed and summarized relevant international research from the perspective of financial network risk communication mechanisms. They found that the financial network diversifies the risk of a single financial institution, and at the same time, the financial network creates a contagion channel for risks among financial institutions, thereby increasing the conclusions of systemic financial risks [3].
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