Abstract:

In this paper, a complex network model describing the relationship between the Hang Seng Index and the trading volume of Hong Kong stock market is established by means of the coarse graining method, and its topology and statistical characteristics are analyzed, thus revealing the fluctuation of the Hang Seng Index related to the trading volume. Then, by calculating the betweenness centrality and inverse participation ratio of each network node, some important topology nodes are obtained. These nodes denote significant patterns that play important roles in the information control and transportation of the stock market, and help to understand the fluctuation regularity of the stock index related to the trading volume. Finally, by comparing the proposed network model with the existing random networks, it is found that the fluctuation of the Hong Kong Hang Seng Index related to the trading volume is statistically stable.

Key words: complex network, Hang Seng Index, fluctuation, trading volume, betweenness centrality, inverse participation ratio