Research on Risk Contagion Mechanism between Chinese Green Securities and Traditional Financial Markets

DOI

10.2991/978-94-6463-572-0_9How to use a DOI?

Keywords

Green securities; risk contagion; R-vine copula

Abstract

With the continuous expansion of China’s green securities market, the increasing variety of financial derivatives, and the complexity of its funding sources, the controllability of risks in the green securities market is gradually decreasing. During the integration process with traditional financial markets, it is likely to accumulate risks and trigger risk contagion. This paper reconstructs the research framework of the financial system and explores the risk contagion mechanism among green bonds, green stocks, and the complete financial market divided by industry. By constructing R-Vine Copula models, the risk contagion paths between China’s green securities market and traditional financial markets at the systemic level are explored, further improving the theoretical framework of risk transmission mechanisms under specific market conditions in China. The research findings not only help regulators maintain the stability and healthy development of the green securities market, but also improve the risk control system of green securities, and promote green securities investors to avoid investment risks and optimize asset allocation.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Kefan Wu
PY  - 2024
DA  - 2024/11/19
TI  - Research on Risk Contagion Mechanism between Chinese Green Securities and Traditional Financial Markets
BT  - Proceedings of the 3rd International Conference on Financial Innovation, FinTech and Information Technology (FFIT 2024)
PB  - Atlantis Press
SP  - 76
EP  - 84
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-572-0_9
DO  - 10.2991/978-94-6463-572-0_9
ID  - Wu2024
ER  -