The Research On The Efficiency Of Chinese Stock Market Information Utilization

Our country is a typical emerging economy of transition, the development of the securities market has made great strides in some aspects of improving the institutional environment and developing of institutional investors. But there are still some major problems have long plagued securities market development of China that securities market optimizing capital allocation function is not significant and capital allocation efficiency is not good in China. In the background of transition economies and industrial structure upgrading, the stock market has many responsibilities such as optimizing social capital allocation, actively guiding social capital flows to promising enterprises of high economic efficiency, improving the investment rate of return investors, promoting capital investment efficiency of listed companies, etc.; and improving the stock market’s efficiency of using the information is an important prerequisite for allocation of social resources to achieve optimal. This article is to study the utilization efficiency of stock market information, which has some practical significance.The information herein is divided into two categories: one is information that reflects the macro fundamentals, namely, systemic factors; the other is information that react microscopic message of enterprises, mainly their business performance. Taking into account the different characteristics of each industry, the research object of this paper is commercial banking sector, and there are two main reasons. First, bank has the basic characteristics of listed companies, at the same time, is the most fundamental financing tools of our economy as an agency. The efficiency of using information in bank stock market not only has a significant impact on capital allocation of investors, but also affects China’s real economy; Second, Chinese listed commercial banks all have the state-owned shares because of the special nature of our social system and the market. Historically, the reflection from stock prices of the commercial banks on the company’s nature of the information is weak, and the problem about the efficiency of using information in listed companies of various industries is outstanding.By analyzing and comparing the stock price of listed commercial banks and the static and dynamic characterization of market index, the paper finds there is a big relevance between the stock price of individual share and market index on behalf of systemic factors. Thereby taking into account that if individual share has ignored the nature message of the company when it fully reflected the macro basic plane messages, this article made two assumptions: First, there is a big relevance between the stock price of listed commercial banks and the market index; Second, the relatedness between the stock prices of listed commercial bank and characteristic information of company(operating performance) is not very outstanding. And the validity of these two assumptions has been verified by Panel Data Regression Analysis. The empirical results verified these two assumptions of this paper, which is that the stock market pays too much attention to macroeconomic fundamentals information and relatively neglects of the characteristic information company. Information utilization efficiency is not good.Finally, from the institutional environment, corporate governance, information disclosure quality, this paper analyzed possible reasons causing the low information efficiency of stock market use: First, our policy system is not complete enough to protect the private property rights of stock investors; Second, the governance structure of listed companies is irrational; Third, the quality of stock market information disclosure is not good. For these three factors above, the paper put forward three recommendations in policy recommendations: First, the institutional environment must be improved, in particular to strengthen the legal protection of stock market investors. Second, the corporate governance structure of listed companies must be standardized and completed. Third, actively cultivating and developing institutional investors, including qualified foreign institutional investors, is an effective way to improve the capacity of information collection, production and processing of stock market and to improve efficiency in using information of security market.