Group12 Proposal
Group 12 - Cross Shareholding
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Contents
Background
Stock Market Briefing
A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.
Korea Stock Market Overview
Korea Exchange (KRX) is the sole securities exchange operator in South Korea. It is headquartered in Busan, and has an office for cash markets and market oversight in Seoul. The Korea Exchange was created through the integration of Korea Stock Exchange, Korea Futures Exchange and KOSDAQ Stock Market under the Korea Stock & Futures Exchange Act. The securities and derivatives markets of former exchanges are now business divisions of Korea Exchange: the Stock Market Division, KOSDAQ Market Division and Derivatives Market Division. As of January 2015, Korea Exchange had 2,030 listed companies with a combined market capitalization of $1.2 trillion.Sustainable Stock Exchanges The exchange has normal trading sessions from 09:00 am to 03:30 pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.
KOSPI
The Korea Composite Stock Price Index or KOSPI (코스피지수) is the index of all common stocks traded on the Stock Market Division—previously, Korea Stock Exchange—of the Korea Exchange. It is the representative stock market index of South Korea, like the Dow Jones Industrial Average or S&P 500 in the United States.
KOSPI was introduced in 1983 with the base value of 100 as of January 4, 1980. It is calculated based on market capitalization. As of 2007, KOSPI's daily volume is hundreds of millions of shares or trillions of won.
China Stock Market Overview
Chinese Stock Exchanges may refer to the two main stock exchanges in mainland China: Shanghai Stock Exchange & Shenzhen Stock Exchange
Shanghai Stock Exchange
The Shanghai Stock Exchange (SSE; Chinese: 上海证券交易所; pinyin: Shànghǎi zhèngquàn jiāoyì suǒ), is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other being the Shenzhen Stock Exchange. Shanghai Stock Exchange is the world's 5th largest stock market by market capitalization at US$3.5 trillion as of February 2016, and 2nd largest in East Asia and Asia. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors due to tight capital account controls exercised by the Chinese mainland authorities and often manipulated by the decisions of the Central Government.
The current exchange was re-established on November 26, 1990 after a 41-year hiatus and was in operation on December 19 of the same year. It is a non-profit organization directly administered by the China Securities Regulatory Commission (CSRC).
The Shanghai Clearing House provides security for financial market participants, and efficient clearing services development purposes, but also conductive to international peers inter-agency communication and cooperation. It provides central counterparty clearing of foreign currency in the interbank market, including clearing, settlement, margin management, collateral management, information services, consulting services, and related management department under other business.
Shenzhen Stock Exchange
The Shenzhen Stock Exchange (SZSE; Chinese: 深圳证券交易所) is one of China's three stock exchanges, alongside the Shanghai Stock Exchange and Hong Kong Stock Exchange. It is based in the Futian district of Shenzhen, Guangdong. With a market capitalization of its listed companies around US$2.285 trillion in 2015, it is the 8th largest stock exchange in the world, and 4th largest in East Asia and Asia.
Why Choose Samsung Group
Chaebol
A chaebol (from Korean jaebeol) is a large industrial conglomerate that is run and controlled by an owner or family in South Korea. A chaebol often consists of a large number of diversified affiliates, controlled by an owner whose power over the group often exceeds legal authority. The term is often used in a context similar to that of the English word "conglomerate". The term was first used in 1984. There are several dozen large Korean family-controlled corporate groups which fall under this definition.
Motivation
Cross shareholding is very important when understanding market behavior. It gets more important when a lot of companies are owned each other which may cause an event on one company result in the others. http://www.theborneopost.com/2015/10/09/samsungs-lee-top-asias-richest-families-list/
Due to its market nature in South Korea with Chaebol, it often gets very difficult to understand ownership connection between company groups. Samsung, Hyundai, LG, Lotte, and Hanjin are the biggest company group run by Chaebol family. Also, our group is interested in company structure difference between South Korea and China.
Objectives
With help of visualization tool in this module, our group will focus company network of one of the biggest company group in Korea, Samsung as well as 5 top companies in China. The objectives are as follows:
1. Introduce company structure in Korea where most of the information is available in Korean only
2. Visualize complex company structure in Samsung Group and some Groups in China
3. Visualize changes in ownership and elaborate potential impact and interesting facts
Data Source
Korea Stock Market Data
For Korea stock market data, we use python to download all the data files from the website. Then manually extract the columns which we need to do the visualization.
The following are some important features in the datasets
1. shareholders of the stocks
2. equity of the stocks
3. capture Structure of the stocks
4. profiles of the stocks
5.Proportion of the shares for the shareholders
China Stock Market Data
For China Stock Market datasets, we got the data from library one source. There are more than 20 years historical data in the datasets. There are lots of datasets for stock details in one source. The following are the lists of stock sheets.
1. shareholders of the stocks
2. equity of the stocks
3. capture Structure of the stocks
4. profiles of the stocks
What's more, in each sheet, there are many columns. Each column represent one future of the stock. Such as stock id, shareholders, English name of the stock, industry and so on. The stock id is the unique identity of the stocks.
Methodology
RShiny
R Packages:
igraph : Fundamental package allowing us to convert network data to ‘graph’ and then to perform Centrality-based network analysis.
visNetwork : Provides an interactive visualization of networks and offering very granular configurations,such as Node Size,Node Selection,Edge Color,Shadow etc. for making our graph neater and prettier.
dplyr : massging data using left_join
data.table : get data frame from graph for further enrichment
Application Code
Shinydashboard : Create dashboards with 'Shiny'.
Application
The URL of the application is list as below.
https://koreastockcrossholding.shinyapps.io/ksch1203/
References
Rhsiny coding part:https://www.rstudio.com/products/shiny/
Dataset for shareholders in Korea: http://dart.fss.or.kr/
Dataset for shareholders in China:http://us.gtadata.com.libproxy.smu.edu.sg/SingleTable/Index
