Research On China’s Stock Market Capital Allocation Efficiency

With China’s economic development, capital market plays an increasingly important role in institutional transformation and adjusting the rational allocation of resources. Intermediation capital, the rational allocation of resources, and contributing to economic growth in China, which is the basic purpose of the establishment of China’s stock market. The Chinese stock market has set up more than20years, and China’s stock market after several reforms. Experienced the rose during2006-2007, and the subsequent big drop of Shanghai Composite Index from6124.04to1664.93. Faced with such a severe shock, we can not help but question: whether China’s stock market has played a role in allocating capital? How the exactly efficiency of Chinese stock markets allocate capital? In the face of the financial crisis, the Chinese stock market is still on the allocation of capital efficient? There are factors that affect the efficiency of China’s stock market allocation of capital?First, this paper introduces the Chinese stock market achieved success to raises the significance in today’s capital markets research to accelerate the reform of capital allocation efficiency of the stock market. And this paper gives a brief introduction to help understand the knowledge content of this paper.Then, the author of relevant literature on the stock market capital allocation efficiency research of the sort, introduced the development of foreign scholars allocative efficiency study of the stock market capitalization, domestic scholars summarizes the research focused on the stock market capital allocation efficiency of China, combined with China’s specific national conditions, inadequate analysis of previous studies, the study of Chinese stock market capital allocation efficiency focus focused on the liquidity of the stock market.Then, through the analysis of the Chinese stock market allocation of capital mechanisms and processes, select variables, model building.After re-entering the stock market for capital allocation efficiency my empirical analysis phase. Empirical research is divided into two parts:first, the empirical analysis of capital allocation efficiency since the share reform Shanghai Stock Exchange A share market. After the second, the completion of the overall analysis of the Shanghai A-share market capital allocation efficiency of China, according to market capitalization, the company property, industry category of samples were classified by analyzing regression results, comparative study of different classification under China’s stock market capitalization allocative efficiency differences.Then, the author of two regression analysis model, a model similar to the regression results of the regression results on the whole. But representatives of the efficiency of capital allocation regression coefficients smaller, also deteriorated significantly, suggesting that the stock issuance for the stock market has a negative impact on the efficiency of capital allocation. In other words, capital flows do not always lead to additional capital flows to companies with high output.In the body of the final research paper on the discovery made a final summary: First, in addition to going through the financial crisis era. China’s stock market capitalization of the configuration of the overall stock market is efficient. Especially after2010, significantly improve the efficiency of capital allocation. Second, the scale of market capitalization will be different, corporate property, corporate-owned sectors of the stock market impact of capital allocation efficiency. Stock market more efficient allocation of capital for companies with large market capitalization, allocation of capital for private enterprise efficiency is significantly higher than that of state-owned enterprises. Due to the different characteristics of the industry factors, policy impact, capital allocation efficiency in different sectors with significant differences. Third, the impact of corporate issuance on capital allocation efficiency of the stock market is negative.