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Research On Chinese Capital Market Efficiency

Posted on:2006-12-10Degree:MasterType:Thesis
Country:ChinaCandidate:R F DongFull Text:PDF
GTID:2156360152475100Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
The capital market plays an important role in China's economic development, yet little research on capital market efficiency has been carried on, which is almost based on the Efficiency Market Hypothesis(EMH). The thesis is focused on Chinese capital market efficiency and analyzes capital market, the content and appearance of capital market efficiency and redefines the content, so as to struct the system of capital market efficiency. By means of linear analysis, relation analysis and trend analysis as well, the paper studies the micro-efficiencies of Chinese capital market, including the financial-resource allocation efficiency, the financing-structure adjusting efficiency,the information efficiency, and the structure and operating efficiency of the capital market. The paper points out that China's listed companies prefer share-right financing and that the share structure hasn't got an improvement and the unfloated state-owned shares still take a large percentage. According to Fama's weak efficiency theory, the paper tests the continuity of Shanghai Securities Complex Index and arrives a conclusion that Shanghai share market is near weak efficiency. Furthermore, the paper chooses the house-appliance listed companies to measure the distance between the market prices and their intrisic values, which shows that Chinese capital market is weak at pricing. Then the artical compares some indexes, such as the price-earn ratio and turn-over, which indicates that there are many man-controled factors and so many spectors as well, affecting the capital market efficiency. The "four-grade rent-hunting" behaviors are also disclosed, which prevents the capital market efficiency from being enhanced. Also the paper analyzes the Macro-efficiencies of Chinese capital market,including industry-structure improving efficiency, the balancing efficiency of local economic development and how much the capital market has made contributions to China's macro-economic increase. A conclusion has been drawn that Chinese capital market has done weakly to boost the macro-economic development with a low efficiency. In the end, the paper prokes some shortcomings, such as system problems, capital market structure problems, the shortcomings of listed companies and so on. After that, some suggestions are put forward.
Keywords/Search Tags:Capital Market Efficiency, Efficiency Market Hypothesis(EMH), Financial Resources Allocation, System Blemish
PDF Full Text Request
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