Abstract: Based on the relevances of stock price volatility and liquidity, a threshold method to build a stock correlation network of Shanghai and Shenzhen stock market, and a study on the topological characteristics of this network were conducted. Empirical study showed that the prices volatility and liquidity among stocks mostly have the same change trend; in a certain range of threshold values, the stock correlation network has the characteristics of small world, namely, the change of a single stock's price volatility or liquidity can infect other stocks through the network, and this infection occurs more esasily within the intra-group; in a given range of threshold value, the distribution of stock correlation network is scale-free. In other words, there exist stocks with a few large market impacts in China. They play an important role in the overall price volatility (mobility) correlation of network. The results of empirical study is significant to guide the equity portfolio risk management.