  Geography effect is investigated for the Chinese stock market including the
Shanghai and Shenzhen stock markets, based on the daily data of individual
stocks. The Shanghai city and the Guangdong province can be identified in the
stock geographical sector. By investigating a geographical correlation on a
geographical parameter, the stock location is found to have an impact on the
financial dynamics, except for the financial crisis time of the Shenzhen
market. Stock distance effect is further studied, with a crossover behavior
observed for the stock distance distribution. The probability of the short
distance is much greater than that of the long distance. The average stock
correlation is found to weakly decay with the stock distance for the Shanghai
stock market, but stays nearly stable for different stock distance for the
Shenzhen stock market.
