Abstract: Based on common asset holdings of funds and the idea of DebtRank, a risk contagion model is constructed on the base of common asset holdings of funds, and the relationship between fund network centrality and fund systemic risk and its influencing mechanism are analyzed by using the data of semiannual fund shareholdings from 2007 to 2020. The results show that there is a significant positive correlation between fund network centrality and fund systemic risk. This conclusion is still valid after considering the potential endogenous problems and relevant robustness tests. The fund network centrality will increase the systemic risk of the fund by increasing the investment similarity, and the influence mechanism will be affected by the fund performance, which is more significant in the fund with better performance. The heterogeneity test shows that the positive effect of fund network centrality on the systemic risk of large-scale funds is more obvious, but there is no significant difference among the funds with different investment styles. In addition，it is found that in recent years, a large amount of money flow into the stock market through funds, resulting in a significant increase in the impact of stock market volatility on the fund system. It enriches and expands the related research of fund systemic risk in China in this paper. The results are helpful to further understand the influence mechanism of fund systemic risk in China, and provide a certain theoretical basis and practical guidance for preventing fund market risk.

Key words: network of common asset holdings; fund systemic risk; network centrality; influencing mechanism