Research on the Impact of Government Venture Capital Guidance Fund on the Firm Systemic Stability: Empirical Evidence from the Stock Correlation Network of Beijing Stock Exchange

During the Central Economic Work Conference held in November 2023, it was explicitly stated that amidst growing global economic uncertainties, the stability of the financial market is central to national economic security. Government Venture Capital Guidance Fund, serving as a bridge between government and private capital, not only fills the financing gap for innovative enterprises but also promotes technological innovation and business growth, thereby enhancing steady economic development. This paper constructs a stock correlation network of the Beijing Stock Exchange and employs a difference-in-differences model with semi-annual data from 2018 to 2022 to empirically test the influence of Government Venture Capital Guidance Fund on firm systemic stability. This paper reveals that, firstly, Government Venture Capital Guidance Fund significantly enhances firm systemic stability within the network of stocks listed on the Beijing Stock Exchange. Secondly, compared to the conventional general equipment manufacturing industry, this influence is particularly pronounced in the dedicated equipment manufacturing, internet-related services, and technology promotion and application services industries, reflecting significant industry-level heterogeneity. This research highlights the positive role of Government Venture Capital Guidance Fund in maintaining financial market stability and offers policy insights for policymakers to mitigate financial risks and sustain economic stability.