The Research For The Fractal Character Of Hong Kong Stock Market

From the researching results, we can see that there are clear cycles (about 275 days) in the data array of daily income rate data of Hong Kong Hang Seng Index and stocks , the time cycles of the stock price and the index present non-linear fractal character, they are a cycling system which is inverse enduring tendency and to be a so called "reback the value". It signifies that if a system which pre-period is going up (going down), there will be over half chance to going down (going up). Today's stock price will affect the future price, it is because that the information is appering from the non-linear way, investors also react on a non-linear way , and finally, through the trading activities react on the stock price and the index .The conclusion of this paper is that the Hong Kong stock market has clear fractal character and is a market that is more changeable than a stochastic array. The Hong Kong stock market react rapidly and sensitively for outside information.