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Transmission Mechanism of Stock Price Fluctuation in the Rare Earth Industry Chain

Author

Listed:
  • Yanjing Jia

    (School of Urban Geology and Engineering, Hebei GEO University, Shijiazhuang 050031, China)

  • Chao Ding

    (School of Management, Hebei GEO University, Shijiazhuang 050031, China)

  • Zhiliang Dong

    (Strategy and Management Base of Mineral Resources in Hebei Province, Hebei GEO University, Shijiazhuang 050031, China
    Key Laboratory of Intelligent Detection and Equipment for Underground Space of Beijing-Tianjin-Hebei Urban Agglomeration, Ministry of Natural Resources, Shijiazhuang 050031, China
    Natural Resource Asset Capital Research Center, Hebei GEO University, Shijiazhuang 050031, China)

Abstract

The transmission of stock price fluctuations of listed companies in the rare earth industry has complex characteristics. Mastering its transmission law is of great meaning to understand the relationship between the upstream and downstream of the rare earth industry chain and market investment. This article uses the time series of daily closing prices of stocks in the global rare earth industry chain in the past ten years as the research object. The Granger causality test and complex network theory were used to construct the risk transmission network of the industrial chain. We have identified the key stocks in the network of stock price fluctuation in the rare earth industry chain and obtained the transmission path of stock price fluctuation. According to the results: (1) The stocks of Chinese and Japanese listed companies considerably influence the transmission of the stock price fluctuation in the rare earth industry chain. (2) The transmission distance of the stock price fluctuation of each network is relatively small, and the transmission speed is relatively fast. (3) The fluctuation of stock price in the rare earth industry chain is mainly transmitted from the upstream and midstream links to the midstream and downstream links.

Suggested Citation

  • Yanjing Jia & Chao Ding & Zhiliang Dong, 2021. "Transmission Mechanism of Stock Price Fluctuation in the Rare Earth Industry Chain," Sustainability, MDPI, vol. 13(22), pages 1-21, November.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:22:p:12913-:d:684936
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    References listed on IDEAS

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