China's Stock Market Noise Study

With the development of Information Economics and Behavior Finance, the word, Noise, has been introduced into economic analysis. Noise phenomena have been found in various markets. Because of securities market's fictitiousness and bargainers' depending on stock information, the noise phenomenon in the securities market is very clear. Noise Theory centers on researching superior or inferior bargainers' behavior characters and influences on share price in the information asymmetry condition. The noise phenomenon in Chinese securities market is not different from those in the west, and its duration, range and degree are more serious than the ones. Therefore, studying the noise phenomenon in Chinese securities market is significant for information analysis, institutional innovation, market supervision etc. At the same time, the research on the securities market in the developing country is good to Noise Theory itself.In this research, materialistic methodology gives me the direction from the philosophic point. Positive and normative analytical methods are mainly used in the article. Due to noise's complexity, other research tools in Institutional Economics, Game Theory, Statistics and Value Theory are applied to solving some material questions. So the variety of these methods becomes an outstanding trait.The dissertation centers on how to demonstrate the constitutional attribute of China's stock noise and bring forward a systematic plan for dealing with the overmuch noise in China's securities market. I have firstly analyzed two kinds of definitions of stock noise. Based on the introduction of the DSSW model, some conclusions have been drawn, and the positive and negative influences of the noise in China's securities market have been dissertated. Because of stock noise's existence, the positive research is very significant. After analyzing noise phenomena, noise degree and market efficiency, I have arrived at a conclusion that the fundamental efficiency and function of China's securities market is low. Besides some common existing factors, the institutional flaw of the securities market dominated by the government is the source of overmuch noise. After analyzing the issuance, trade, delisting and information systems, I have put forward a totally new conception-institution noise and demonstrated its inner mechanism. To solve the overmuch noise in China's securities market, I have last made a systematic plan that is consisted of functional orientation, institutional innovation and countermeasure of restraining information noise. At the end of the thesis, I put forward a new idea that the government and other actors in the securities market should work together to control the stock noise.