The Policy Effects Of The Chinese Stock Market Research

The Chinese stock market has been influenced by the policy greatly since its foundation. Because of this the Chinese stock market was called "policy market" .Researching the policy effect and its character has very important theory meaning and realistic meaning .Through studying, it can not only reveal the function of the stock market but also the rule of its development. And those are useful for people making correct decision and for the government's orientation.Before researching we'd make clear of the meaning of policy, policy effect, policy efficiency. Policy means some measures that are taken to influence the stock market. It includes guidelines, laws, statutes, the views point of the leaders and the important medias. Policy effect, policy efficiency and policy market have different meanings.And then I choose some policies and Shanghai stock index to analyze the policy effect of the Chinese stock market. By event study method and constant return model this paper got some conclusions. The empirical results show that the Chinese stock market is becoming more mature and the policy effects are weakened. Also, there are some new stations in Chinese stock market, for example, the expectancy reaction to the policy is weakened and the policies are more constant than ever before. The Chinese stock market is becoming more and more efficient.In my opinion, there' re several reasons for the new character. One is that the orientation of the stock market has changed. Secondly, the orientation of the government has changed too. Thirdly, the notion and the structure of the investor have changed. Fourthly, the quality of the list companies has been improved. And last the institution environment has changed. According to these, and in the view of welfare economics and asymmetric information economics, also, because of the character of our economy, the Chinese government should enhance the supervision of the stock market.