Research On The Efficiency Of China's Convertible Bond Market

As the economic environment and financing needs change and develop,innovative financing instruments such as convertible bonds are getting more and more attention,because it has the dual characteristics of creditor's rights and equity.In China,convertible bonds have a history of twenty years.On 1996,our country began to look for the pilot of convertible bonds,they focus on companies with conditions.Later,provisional measures for the management of convertible bonds were promulgated in 1997.These regulations on convertible bond market promulgated by the state have greatly promoted the healthy development of China's convertible bond market.Although the convertible bond market has made remarkable progress so far,there are still many problems,For example,the scale of convertible bonds in the bond market is too small,the information disclosure of listed companies in our market is still lack of integrity,and the market structure of our country is not particularly complete,These problems have greatly affected the development of China's convertible bond market.Therefore,the research on convertible bonds has attracted the attention of many academic professionals.On the basis of efficient market theory,this paper studies the validity of China's convertible bond market.First of all,it briefly introduces the current domestic and foreign scholars' research on the effectiveness of the securities market,and gives a basic introduction to the theoretical system of market efficiency.It is emphasized that the market efficiency studied in this paper refers to the validity of market information,and the formation and present situation of efficient market theory are briefly explained,and the basic contents of efficient market theory are classified and summarized.This paper introduces several main forms of efficient market,and summarizes the common testing methods.Then,the sample data is selected and processed,and a variety of measurement models are used,such as single root test,correlation sequence and run length test,variance ratio test and so on.Finally,it is found that the convertible bond market in China has not reached the weak and effective,and the relevant policy supervision suggestions are put forward in view of the efficiency performance of the convertible bond market in China.