Chinese Agricultural Listed Companies Market Efficiency

China is a large agricultural country, with about 70% of the rural population. Agriculture as the basis for the national economy has an extremely important role, the development of agriculture related to the nation's economic development and political stability. However, low production efficiency of Chinese agriculture, agricultural modernization level is not high, lack of government subsidies to agriculture, coupled with price elasticity of farm itself is small, convergence of industrial structure, and little product differentiation, the market of agricultural products often sink into the trouble about Oversupply, low prices, and farmers plight of increasing output without increasing in the long-term, at the present stage made agricultural development lags behind other industries. More reality shows that China's agriculture is still in a weak position of the industry, low level of agricultural use of high-tech, the transfer of rural surplus labor employment is limited, weak income growth of farmers.For this reason, agricultural industry must accelerate industrial restructuring, the focus of adjustment of agricultural structure is achieve to fundamental change from traditional agriculture to modern agriculture, encourage agricultural industrialization mode of operation, in order to advance the process of agricultural modernization in China. Practice shows that Strong support for agricultural enterprises listed in favor of agricultural enterprises to better use the capital market will help expand the capital operation between enterprises, but also help to idle capital together to develop agriculture. Therefore an important goal of agricultural development is to support agricultural enterprises listed.Agriculture listed a link to the market, a link to agricultural production and supply, agricultural production can provide a lot of money to ease the shortage of agricultural long-term investment status. But how is the market efficiency of agricultural listed companies? What indicators and which method should we select to measure the market efficiency of agricultural listed companies? And what is affected the efficiency of agricultural listed companies in the market? How to effectively improve the market efficiency of agricultural listed companies? These are the main problems to solve in this paper.This paper used the asset-choice theory as the main theoretical basis,researched the efficiency of the market situation of agricultural listed companies Using the risk-benefit difference as the efficiency of evaluation criteria, evaluation the efficiency of agricultural listed companies in the market, and the factors that affect the market efficiency.accords to the general characteristics of Agricultural Listed Companies in the capital market, selects the appropriate model and inspection methods for empirical testing. In the course of empirical research, accordance with the "Guidelines on Industrial Classification of Listed Companies" principle, Select the 51 agriculture listed companies as the main object to study, using the mathematical software matlab6.5 draw the portfolio efficient frontier in January 2001 to December 2010 agricultural listed companies in the stock market, then introduced the risk-free rate of return, calculated the optimal market portfolio and the market yield optimal weight ratio, use Agricultural Listed Companies in China's overall stock market turnover ratio, calculating the actual degree of market portfolio returns in January 2001 to December 2010, Finally, calculate the Difference risk-benefit. Examining the difference of risk-benefit and weight ratio between optimal portfolio and the actual portfolio in the capital market, explain the market efficiency changes of Agriculture Listed Companies, based on the changes of risk-benefit difference and risk weight difference.If difference between the actual market return and the theoretical optimal revenue is equal to zero, then the actual market situation in line with the theoretical optimum, the market reached a Pareto optimal, it also shows the high efficiency of the market. Conversely, there have large difference between the optimal conditions and the market actual condition, then market efficiency has not been effectively and market efficiency should be improvedAfter obtaining the conclusions about market inefficiency, further analysis factors that affect the market efficiency of agricultural listed companies. Selected agricultural products price index, inflation rate, rate of return on the Shanghai Composite index of three indicators as explanatory variables, measured test results showed that the efficiency of agricultural price index less effect on efficiency of the market, while inflation significantly affected the efficiency of the market. In addition, as agriculture listed companies is a major player in the agricultural listed company stock market, their own situation directly effect the efficiency of the agricultural listed companies market. This article from three aspects are the agricultural listed companies industry conditions, capital structure and results of operations analysis the current problems of agricultural listed companies. Finally, Combination of measurement results of agricultural listed companies and industry data, financial indicators data to analysis and summary, given some corresponding policy advice to Agriculture Listed Companies for healthy development of Agriculture Listed Companies markets.at the end of the paper to description the Inadequate of the article, and follow-up to Outlook.