Research On Systemic Risk Contagion Of China’s Financial Sub-industry Based On Complex Network Perspective

It is a top priority for China to hold the bottom line of systemic financial risks.It is the subject of the research on the systemic risk transmission mechanism and characteristics of China’s financial industry.The existing researches mainly focus on the default cascading of interbank business and the simulation of transaction matrix infection.This kind of research belongs to the research on risk contagion of financial sub-sectors at a single point in time,and the timevarying characteristics of risk contagion among financial sub-sectors during the period.There is a clear lack of grasp.At the same time,research based on complex network perspectives also has shortcomings such as the evolution of systematic risk communication channels and the role of different important institutional nodes in the evolution process.Based on this,in order to explore the changing characteristics of systemic risk communication channels in different financial sub-sectors in China,this paper analyzes the time-varying channels of systemic risk in China’s financial sub-sector based on the complex network perspective,and proposes financial regulatory system recommendations based on the results..This paper firstly identifies the current financial systemic risks,and combines the current financial industry development to analyze the contagion mechanism behind the systemic risk contagion channel under China’s financial network,and draws a complex network by comparing different measures of financial systemic risk.The law is more applicable to the conclusion of its infection research.Then,based on the Pearson correlation coefficient method and the selection of different financial sub-industry nodes,the construction of the financial complex network model during China’s 2014-2018 period is completed,and then the empirical analysis of the model is carried out,including: macroscopic visualization of the risk channel visualization of important financial institutions in China.Micro-time-variation analysis,discussing the trend of indicators and the reasons behind the different importance institutions in China’s financial sub-sectors at different time points,using the method of quantile regression to measure CoVaR value to measure the systemic risk spillover value of each node,combined with different node network centers Sex indicators build regression equations and so on.Finally,using the conclusions obtained in the previous section,two institutional recommendations for risk supervision are proposed for the shortcomings of China’s financial systemic risk supervision system: hierarchical and differentiated supervision principles,and early warning mechanism based on medium centrality.