Reports Summarize Risk Management Study Results from Fudan University (Exploring Systemic Risk Dynamics in the Chinese Stock Market: A Network Analysis with Risk Transmission Index): Insurance – Risk Management

2024 APR 10 (NewsRx) -- By a News Reporter-Staff News Editor at CDC & FDA Daily -- Researchers detail new data in risk management. According to news reporting out of Shanghai, People’s Republic of China, by NewsRx editors, research stated, “Systemic risk refers to the potential for a disruption in one part of a financial system to trigger a cascade of adverse effects, impacting the functioning of the system.”

Funders for this research include National Natural Science Foundation of China.

Our news reporters obtained a quote from the research from Fudan University: “Despite the progress on novel systemic risk measures, research on dynamics of systemic risk network structure and its community effect is still in its initial state. In this study, we utilize price data from 107 representative Chinese stocks spanning the period from 2017 to 2022. A systemic risk network is derived from the Risk Transmission Index based on TENET and the QR-Lasso model. By utilizing DBSCAN, HITS and community detection algorithms on the network, we aim to propose a more suitable definition of systemically important companies, explore the interrelationships between companies, and discuss its plausible reasons for dynamics structural changes.”

According to the news editors, the research concluded: “The empirical findings demonstrate a substantial involvement of insurance companies in both contributing to and receiving systemic risk within the analyzed context. We identify prominent risk output and input centers, and emphasize the profound impact of the COVID-19 pandemic on the dynamics of systemic risk.”

For more information on this research see: Exploring Systemic Risk Dynamics in the Chinese Stock Market: A Network Analysis with Risk Transmission Index. Risks, 2024,12(3). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks12030056.

Our news journalists report that more information may be obtained by contacting Xiaowei Zeng, School of Management, Fudan University, Shanghai 200433, People’s Republic of China. Additional authors for this research include Yifan Hu, Chengjun Pan, Yanxi Hou. Our reports deliver fact-based news of research and discoveries from around the world.