A Viewpoint Of The Research On The Efficiency Of Stock Market Between The Mainland And Taiwan

There are many kinds of factors affected on the stock market. Generally speaking, the most important factors are as follows: the maturity of investors' investing concept, the reasonable structure of the stock market, the perfection of information disclosure system and the regulation ability over the stock market.This essay, firstly, makes an positive testing on the efficiency of the current stock market between the mainland and Taiwan, which indicates that the efficiency of the stock market between the mainland and Taiwan is of weak form and still not arriving at the semi-strong efficiency. Then on the basis of the analysis on the share structure, information disclosure system and regulation system of the stock market between the mainland and Taiwan, the essay probes into the causes of the existing problems and weaknesses from the different angles of institutional economics and behavioral finance. In the end, the essay puts forward some reasonable and constructive suggestions about how to improve the efficiency of the stock market between the mainland and Taiwan.From the research, the essay gives us the answers about how to promote the efficiency of the stock market between the mainland and Taiwan. Firstly, the share split in the mainland of China should be reformed, aiming at raveling out the effects on resource allocation efficiency of stock market as a result of ambiguous property right. Secondly, the information disclosure system should be further perfected from different aspects, such as, to further strengthen corporation management, to establish information disclosure specialized institution, to improve the authority of information disclosure, to innovate the information disclosure system and to perfect the stock market regulation system, etc. Thirdly, the regulation over the stock market should be reinforced by means of establishing and perfecting the relative laws and regulations, setting up the litigation compensation system of stock market, determining the rational position of the government in theregulation system, and strengthening the supervision and motivation over the supervisors. In the end, the essay poses an important and practical approach to promote the efficiency of the stock market between the mainland and Taiwan, which is to enforce the communication and cooperation in developing the stock market.