Analysis of the Topology Structure of Network of Chinese Stock Market

In order to describe the network and topology structure of Chinese stock markets in a deep and vivid way, this paper selected 20 stocks belong to different sections of its trading days between May 3, 2011 to May 3, 2012 closing price (before recovery of the right) calculated as the basis to establish a stock market adjacency matrix. Firstly, by using the knowledge of mathematical statistics and algebra to get the related coefficient between two stocks and establish adjacent matrix. Secondly, the topology of the established network whose vertices are stocks and edges between vertices are the related coefficient of stocks is created by the Pajek software for the sake of simulating relatively real model for estimating stock network. Lastly, by calculating and using the main index which influence the network structure characteristics and dynamics features such as average path length, cluster coefficient and degree distribution to make a further analysis of the stock market network, which could provides some recommendations and actual of data as reference to China of stock market construction.