Linkages and dynamic stability of the national of global primary stock index before and after the financial crisis

HUANG Fei-xue;GU Jing;LI Yan-xi;SU Jing-qin

Systems Engineering - Theory & Practice ›› 2010, Vol. 30 ›› Issue (10) : 1729-1740.

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Systems Engineering - Theory & Practice ›› 2010, Vol. 30 ›› Issue (10) : 1729-1740. DOI: 10.12011/1000-6788(2010)10-1729
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Linkages and dynamic stability of the national of global primary stock index before and after the financial crisis

  • HUANG Fei-xue, GU Jing, LI Yan-xi, SU Jing-qin
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Abstract

The traditional parameter analysis method would bring the diversity of results in analysis. Starting directly from the actual transaction data, the subdominant ultra-metric space of a precise topology sequence was proposed. Via date data from the most representative 52 stock index July 22, 2005 to June 30, 2009, September 15, 2008 was as the cutoff point before and after the financial crisis. The results: there was more significant clustering effect in geographical regions of stock index after the outbreak of financial crisis; degree of relevance is significantly increased and the linkage was strong among stock index; the dynamic stability of the global stock market overall was relatively stable. The influence of American stock index reduceed, but it of China was growing after the financial crisis. In order to avoid sharp fluctuations in the stock market, financial supervision should be global coordination, and should not be a country or a region of isolated acts. The diversity of the world stock market should be maintain, to prevent economic and financial integration of the saying "One with all, a loss will also be ruined".

Key words

financial crisis / linkages effect / subdominant ultra-metric space / minimum spanning tree (MST) / global stock index

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HUANG Fei-xue , GU Jing , LI Yan-xi , SU Jing-qin. Linkages and dynamic stability of the national of global primary stock index before and after the financial crisis. Systems Engineering - Theory & Practice, 2010, 30(10): 1729-1740 https://doi.org/10.12011/1000-6788(2010)10-1729
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