An Empirical Study of Investment Bank Syndicate Networks in China´s Capital Market

I analyzed the IPO syndicate networks in China´s capital market tracked over a period of 5 years from the perspective of social network. The syndicate networks were among 89 investment banks in China´s capital market and included 905 ties. With the help of UCINET 6.0, I found that these inter-organizational networks showed clear pattern of small-world which was characterized by high degree of local clustering and short paths between banks. I also found that the connectivity of the syndicate networks was highly skewed. I examined evolution over time in the network´s properties of small-worldliness and skewness, and demonstrated their theoretical and practical implications for Chinese investment bank networks by linking these properties to the network´s information transmission speed and resilience.