Measurement and optimization of resilience of stock market according to risk response.

Grasping the characteristics of stock market performance is the key to maintaining its operation and development. This paper applies approaches in complex system to study the risk response problem of stock market. Based on the price interdependencies among stocks, we build stock network to represent the microstructure of the market. According to occurrence probability of different types and levels of risks, we propose resilience computing model to measure the characteristics of stock network performance macroscopically. Taking Shanghai stock market as an example, grounded on the rules of risk occurrence and stock price change, this study investigates the effects of three risk response strategies on network resilience. The results show that different strategies are appropriate to different types of risk. The research is helpful to grasp the operational mechanism of the stock market, and provides decision supports to the construction of risk response strategy. [ABSTRACT FROM AUTHOR]