RESEARCH ON STOCK PRICE LINKAGES BETWEEN THE THIRD-PARTY PAYMENT COMPANIES: EMPIRICAL ANALYSIS OF COMPANIES IN CHINA

With the development of electronic commerce, the third-party payment emerges as the times require. It plays an important role in Internet finance and has an important impact on the social economy. The exploration of the internal relationship between third-party payment can promote the development of the third-party payment market and further promote the development of electronic commerce. Aiming at the intrinsic relationship of the third-party payment company's stock price fluctuation, this paper establishes the DCC-GARCH model. Taking the representative third-party payment company Alibaba and Tencent Holdings' stock price as the research objects, this paper uses Granger causality test and impulse response function to analyse the volatility relationship between stocks. The results show that Alibaba and Tencent Holdings are not completely and mutually independent. There are some internal links among the fluctuations of stock price, and their opening prices interact with each other (Kazemilari et al., 2018). When stock prices are shocked, they will have a certain impact on each other. Furthermore, it further analyses the internal reasons of the linkage of a stock price of Alibaba and Tencent Holdings, and analyses the external reasons from three aspects: the contagion of financial market, the integration of financial market and the progress of science and technology. At the same time, it puts forward some policy suggestions, which will be helpful to the future development of third-party payment.