Research On The Institutional Efficiency Of Chinese Stock Market

The researcher analyzes the suitability of EMH for the research on the efficiency of Chinese stock market, and finds in this theoretical framework many issues about the efficiency of Chinese stock market can not be discussed . Instead of EMH , a new framework has been developed in this dissertation , which is based on the theory of institutional economical analyses.In this new framework , the researcher discussed six institutional functions of Chinese stock market given the institutional cost is fixed ; and , those six institutional functions are: (1) capital value finding; (2) shifting save into investment ; (3) corporate governance; (4) providing a institutional environment of corporate M&A; (5) risk management; (6) national income distribution .Based on the empirical research on those six institutional functions , the conclusion is that the institutional efficiency of the Chinese stock market is low in the whole.The researcher also provides some suggestions about how to promote the efficiency of the Chinese stock market, that is to let this market perform some new necessary functions through market-oriental reform .