The Quantitative Research On The Efficiency In China's Stock Market

The basic function of the stock market is to optimize the allocation of resources, that is, by means of distinct property line and continuous stock exchange, promote the rational flow of resources, hence the utilizing efficiency of resources , then realize the ultimate aim of spurring the economic growth more and more. With the orientation of that, this article talks about how is Chinese stock market efficiency from different angels. The article aims to probe into the methods to increase the efficiency of stock market, and then encourage it to play a more positive role in promoting the economic development.Based on this train of thoughts, this article devotes five chapters to study the related issues. Chapter one presents the stock market efficiency theory as well as a review of the research. First of all, it introduces the Efficient Market Hypothesis, such as the historical background, mathematical description, classification and ways of test. Then it summarizes the research about Chinese stock market efficiency of domestic scholars. Chapter two makes a simple analysis of the present situation of Chinese stock market. Chapter three is devoted to the statistical analysis of Chinese stock market efficiency. Taking the Shanghai stock market for example, it adopts stage test and empirical analysis of efficiency evolution to make an inquiry into Chinese stock market efficiency. Chapter four examines the relation between stock market development and economic growth in china by Granger causal relations test. It applies multivariate Granger causal relations test to measure whether the stock market has effect on economic growth, which illustrates Chinese stock market efficiency from a different aspect. Chapter five brings out discuss. On the basic of the analysis above, it explains the results obtained and comes up with some suggestion.