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Research on the relationships of the domestic mutual investment of China based on the cross-shareholding networks of the listed companies

Author

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  • Ma, Yuan-yuan
  • Zhuang, Xin-tian
  • Li, Ling-xuan

Abstract

Enterprises are the core power and the carriers to promote the country’s economy developing sustainably and rapidly; the listed enterprises are the outstanding companies which can represent the economic level at the places where the enterprises are located, so we establish the cross-shareholding networks of the listed companies between 2002 and 2009, and then analyze the mutual investment at company-level, province-level and region-level. We have researched the overall trend of economic development and the overall tendency of capital flow of China in the recent 8 years based on the cross-shareholding networks, the influence of a global economic crisis on the stock markets and the overall economics of China in 2008 and the recovery of the economy after the economic crisis. Moreover, we analyze the variations of the cross-shareholding networks and the influence of the state-owned large and medium enterprises listing frequently on Chinese stock markets. We divide the provinces of China into 3 main categories according to their industrial situations. Though the analysis, we find that the wealth gap between the different areas is not significantly reduced even though the government has carried out strategies such as the Development of the West Regions and the Rejuvenation of Old Industrial Bases in Northeastern China. We analyze the cumulative distribution function of the degree of the vertices and use large amounts of data to do empirical analysis. The methods used include the hierarchical cluster analysis, regression analysis, etc.

Suggested Citation

  • Ma, Yuan-yuan & Zhuang, Xin-tian & Li, Ling-xuan, 2011. "Research on the relationships of the domestic mutual investment of China based on the cross-shareholding networks of the listed companies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(4), pages 749-759.
    • Handle: RePEc:eee:phsmap:v:390:y:2011:i:4:p:749-759
    DOI: 10.1016/j.physa.2010.10.042
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    References listed on IDEAS

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    Cited by:

    1. Guo, Hongling & Sun, Yue & Qiu, Xuemei, 2021. "Cross-shareholding network and corporate bond financing cost in China," The North American Journal of Economics and Finance, Elsevier, vol. 57(C).
    2. Yuanyuan Ma & Lingxuan Li, 2018. "Crisis Spreading Model of the Shareholding Networks of Listed Companies and Their Main Holders and Their Controllability," Complexity, Hindawi, vol. 2018, pages 1-17, December.
    3. Gautier Marti & Frank Nielsen & Miko{l}aj Bi'nkowski & Philippe Donnat, 2017. "A review of two decades of correlations, hierarchies, networks and clustering in financial markets," Papers 1703.00485, arXiv.org, revised Nov 2020.
    4. Gao, Bo & Ren, Ruo-en, 2013. "The topology of a causal network for the Chinese financial system," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(13), pages 2965-2976.
    5. Xi, Xian & An, Haizhong, 2018. "Research on energy stock market associated network structure based on financial indicators," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 490(C), pages 1309-1323.
    6. Kanno, Masayasu, 2019. "Network structures and credit risk in cross-shareholdings among listed Japanese companies," Japan and the World Economy, Elsevier, vol. 49(C), pages 17-31.
    7. Hossein Dastkhan & Naser Shams Gharneh, 2019. "Simulation of Contagion in the Stock Markets Using Cross-Shareholding Networks: A Case from an Emerging Market," Computational Economics, Springer;Society for Computational Economics, vol. 53(3), pages 1071-1101, March.
    8. Li, Jie & Ren, Da & Feng, Xu & Zhang, Yongjie, 2016. "Network of listed companies based on common shareholders and the prediction of market volatility," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 462(C), pages 508-521.
    9. Hossein Dastkhan & Naser Shams Gharneh, 2016. "Determination of Systemically Important Companies with Cross-Shareholding Network Analysis: A Case Study from an Emerging Market," IJFS, MDPI, vol. 4(3), pages 1-17, June.
    10. Sun, Bowen & Li, Huajiao & An, Pengli & Wang, Ze, 2020. "Dynamic energy stock selection based on shareholders’ coholding network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 542(C).
    11. Fenghua Wen & Yujie Yuan & Wei-Xing Zhou, 2019. "Cross-shareholding networks and stock price synchronicity: Evidence from China," Papers 1903.01655, arXiv.org.
    12. Zherui Li & Zhen Feng, 2019. "Mapping Urban Networks through Inter-Firm Investment Linkages: The Case of Listed Companies in Jiangsu, China," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    13. Li, Zhenghui & Chen, Bin & Lu, Siting & Liao, Gaoke, 2024. "The impact of financial institutions' cross-shareholdings on risk-taking," International Review of Economics & Finance, Elsevier, vol. 92(C), pages 1526-1544.
    14. Masayasu Kanno, 2018. "Bank–insurer–firm tripartite interconnectedness of credit risk exposures in a cross-shareholding network," Risk Management, Palgrave Macmillan, vol. 20(4), pages 273-303, November.
    15. Fenghua Wen & Yujie Yuan & Wei‐Xing Zhou, 2021. "Cross‐shareholding networks and stock price synchronicity: Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 914-948, January.
    16. Yun Feng & Xin Li, 2021. "Does cross-shareholding lead to China's stock returns comovement? Evidence from a GMM-based spatial AR model," Empirical Economics, Springer, vol. 61(6), pages 3213-3237, December.

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