Based On The Enterprise Value Evaluation Model Of Chinese Capital Market Efficiency Analysis

Based on the effectiveness of the capital market theory shows that, in a full and effectivecapital markets, the price of the shares of listed companies is fairly the value of the company,any company’s stock price to its own intrinsic value of the deviation is rare. But this balanceis an ideal situation, the reality of the market in the stock price and the intrinsic value of theCompany is always in a dynamic equilibrium. The capital market supports long-term funding,the investors face many uncertainties and high risks. The ability to attract investors is that themarket’s ability to fairly reflect the enterprise value. The efficient functioning of markets isthe premise of securities products reasonably priced, but also optimize the allocation ofresources and to attract investors and give the basis for a reasonable return.Efficient market thinks that each stock trading in the market price should be consistentwith its intrinsic value, so we can use absolute valuation of the market from the perspective ofenterprise valuation effectiveness of inspection. By the market value of listed companies in2006,2007,2008. Three years to assess the market value of the linear regression analysisshowed that the fitting is very low, comes to the effectiveness of China’s capital market is nothigh. So we should continue to improve the capital market resource allocation function,intensify the reform of China’s capital market, do our best to improve the operating efficiencyof listed companies and create value for shareholders. So I provide policy recommendationsto improve the capital market development, and promote the healthy and orderly developmentof China’s capital market.