Empirical Analysis On The Effectiveness Of Small And Medium-sized Board Market

In China,the stock market consists of three types of markets:the main board market,the small and medium-sized board market,and the Growth Enterprise Market.As a major part of the stock market,the main board market is an important place for stock issuance,listing and trading.In the current market environment of China,some companies cannot meet the conditions of the main board listing market.But due to their financing needs,the small and medium-sized board market has been emerged.In the small and medium-sized board market,some companies have developed rapidly,attracting many securities investors.The small and medium-sized board market has been become an important major on China's stock market.Most scholars are now studying the effectiveness of the main board market.And there is less research on the SME board.This article empirically analyzes the effectiveness of the small and medium-sized board market and provides corresponding theoretical basis for investors and reasonable investment.Based on the research background and literature review both at home and abroad,this article introduces the relevant theories and the test methods for the market's weak validity;based on the 2007-2017 SME Index,the Shenzhen Component Index,and the daily logarithmic yield of China Aviation Electromechanical Co.,Ltd,for the study subjects,ADF test,sequence correlation test and run test are used to the stability test and the weak validity test;the sequence correlation test results shows that none of the three had achieved weak validity,and the run test results shows Shenzhen's component index and the AVIC Equities have achieved weak-form validity;this shows that the different test methods are not completely consistent with the market's weak-form validity;finally,a linear regression analysis was used to analyze the linear correlation between the yields of the SME Index and the Shenzhen Component Index,the yield of the SME Index and the China Aviation Electrical and Mechanical Services Corporation.The results show that there is a significant linear correlation between their yields.