Network interdependency between social media and stock trading activities: Evidence from China

• Investigate the relationship between the interaction intensity and stock trading.
• Stocks with high RRO accompanied with low statistical VPT.
• The lively discussion in microblog network does not cause the VPT fluctuation.
• RRO plays a significant role in inverting the u-shaped relationship with VPT.

The emergence of social media accelerates the research on information dissemination and its corresponding influence on trading tendency. Based on empirical study of the dynamic relationship between the ratio of re-post microblog and original microblog (RRO) and average volume per transaction (VPT), we find the following results: (1) In microblog network, stocks with high RRO are often accompanied with low statistical VPT; (2) When the discussion about one stock is quite lively in microblog network (such as the blog postings reach a summit), it does not statistically cause the fluctuations of VPT of the stock; (3) Overall speaking, RRO plays a significant role in inverting u-shaped relationship with VPT.