Chinese Stock Market Efficiency Of Resource Allocation Analysis

As an intermediary of the capital demanders and providers, stock market offers financing and allocates resources by the price signal. It supervises capital demanders by some systematic arrangements and protects the rights and interests of the investors. So the stock market has two basic function : one is financing, another is efficient allocation of resources. The resource allocation function of stock market is that the stock market leads resource to flow through the price fluctuation so that to reach the state of rational resource allocation. The resource allocation effectiveness of stock market is that the fund flow rationally and effectively .The thesis falls into three sections. The first section states the theories on resource allocation and analyzes the mechanism of resource allocation of stock market. The second section tests the effentiveness of resource allocation of china'stock market. The final section analyzes the reason of uneffectiveness of resource allocation of china'stock market and brings forward countermeasures accordingly.