Analysis Of Abnormal Risk In Chinese Stock Market

The paper takes abnormal risk in Chinese stock market as the main topic. On the basis of summarization of foreign and domestic research about stock market and the Efficient Market Hypothesis, the paper discusses the existing and causes of formation of abnormal risk in Chinese stock market. The author uses both qualitative analysis and rational analysis to test market efficiency and the abnormal risk existing in the stock market. The results are: the stock price is obviously deviates to stock value. The stock market doesn't achieve weak-form efficiency. The relationship between stock market and the condition of macroeconomic doesn't pass the Granger causality test.By the qualitative analysis and rational analysis, we can make conclusion that in order to reduce abnormal risk we should find the risk factors. So the paper provides some suggestions to reduce these factors such as: rising the quality of listed companies inside the stock market, building stock market insurance institution, perfecting the investor's structure and market supervision policies. All of these works are trying to reduce the risks of stock market, so that promotes further development of our national economy.