The Analysis of Risk Measurement and Association in China’s Financial Sector Using the Tail Risk Spillover Network

This study focused on analyzing the complexities and risk spillovers that arise among financial institutions due to development of markets. The research employed conditional value at (CoVaR) methodology quantify extent tail spillover constructed a network encompassing Chinese institutions. further investigated characteristics, transmission paths, dynamic evolution this under different conditions. empirical findings highlighted several important insights. First, play distinct roles in process, with securities banking sectors as exporters insurance diversified takers. closest relationships were observed between sectors. Second, high-risk scenarios, there is significant intrasectoral banks sector, well dual-sectoral contagion securities, most-common occurring Finally, sector acts pivotal node for spillovers, being main transmitter intersectoral risks. formation networks are influenced by endogenous mechanisms, particular convergence effect.