Network Subgraphs of the heterogeneous Chinese credit system

TL;DR

This paper analyzes the evolution of Chinese guarantee networks by examining sub-patterns, revealing motifs like mutual guarantees and the roles of small and large firms in these structures.

Contribution

It introduces an analysis of sub-pattern motifs in Chinese guarantee networks considering node heterogeneity, highlighting the roles of different firm sizes.

Findings

Mutual, 2-out-stars, and triangle sub-patterns are motifs in the networks.

Small firms tend to form mutual guarantee relationships.

Large firms are often guarantors in 2-out-star patterns.

Abstract

In this study, we investigate the evolution of Chinese guarantee networks from the angle of sub-patterns. First, we find that the mutual, 2-out-stars and triangle sub-patterns are motifs in 2- and 3-node subgraphs. Considering the heterogeneous financial characteristics of nodes, we find that small firms tend to form a mutual guarantee relationship and large firms are likely to be the guarantors in 2-out-stars sub-patterns.