The Research On The Validity Of Shanghai Stock Market

Stock market, one of the important parts in the capital market, has the functions of fund-raising and optimizing resource allocation, and bringing these functions into full play should depend on the level of market efficiency. Therefore, the research on the validity of Shanghai stock market is of fundamental theoretical and practical significance.The thesis is on the basis of the efficient market hypothesis and use several quantitative methods such as serial correlation test, runs test and unit root test to indicate whether the Shanghai stock market is in the phase of weak-form efficiency or not. The results show that Shanghai stock market has yet to reach the weak-form efficiency, and is still in a state of inefficiency. On this basis, a more systematic and in-depth analysis have been done regarding the shaping factors of inefficiency of Shanghai stock market in terms of the quality of information disclosure, the behavior of investors, the positioning function of stock market, the institutional arrangements and policy intervention. Meanwhile, several countermeasures have also been raised in order to promote the effectiveness of Shanghai stock market from the aspects of improving the quality of information disclosure and the quality of listed companies, cultivating rational investors, revising the positioning function of stock market, amending stock market trading system and grasping the correct intention of policy intervention.