The Research Of China Stock Market Efficiency On The Basis Of Institutional Change

We select the Shanghai Composite Index closing price that represents Chinastock market and shows that the China stock market has not reached a weak-formefficient with the use of statistical analysis and R/S analysis comprehensively,which coincides with our current stock market downturn, especially the problems inthe current issue of the new shares issued, bonus system, delisting system and so on.Therefore, it is highly significant to explore the effectiveness of our policy measuresto promote China’s stock market to evolve to a higher level and an orderly state.Firstly, we describe the background and significance of the topic briefly, sortthe relevant literature and we note the thesis research and innovation. Secondly, theefficient market theory and measurement test is briefly described, focusing on the R/S analysis. On this basis, we study the effectiveness of China’s stock market withempirical analysis which adhers to the systematic and quantifiable principles ofhierarchy, and then we draw the relevant conclusions.Innovation of this paper is just as follows:Firstly, the innovation comes from the theoretical aspect. We study theeffectiveness of the stock market considering the institutional change of China’sstock market rather than simply put the mathematical statistics research method intothe study of the effectiveness of China’s stock market.Secondly, the innovation comes from the research methods. In this paper, weuse the R/S analysis methods of the fractal theory to study the stock marketefficiency in order to overcome the shortcomings of traditional research methods.