| Author | Cui, Xiaofeng |
| Call Number | AIT RSPR no. SM-95-77 |
| Subject(s) | Stock exchanges--China
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| Note | A research study submitted in a partial fulfillment of the requirements for the Degree of Master of Business Administration. |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ;no. SM-95-77 |
| Abstract | Securities market development is of paramount importance to the development of a countries economy. In the rapid growth and development of China economy, the securities market of China appears playing a significant role in raising capital for various institutes in any industries. The efficiency of capital market is necessary for the harmonious growth of capital market, and more particularly in an emerging economy. The efficient equity market allows companies to adjust their capital structure in response to new opportunities and changing business conditions. If the market were efficient, the primary market will provides companies with access to low risk finance. In the secondary market ,share prices will fully reflect participant's views of companies' performances and pr<;>spects. This serves as a discipline on management. The market also provides a measure of companies cost of funds that is useful for investment decisions as well as a guide to aggregate economic expectations. These price signal are better in mature deep markets, where speculative influences are smaller and market information is adequate. For investors, equities are at the high end of the risk spectrum, with individual company risks average. The efficient equity market also can help investors to diversify risk and adjust risks to a desired level. This research proposes, to test the efficiency of China's securities market based on the efficient market hypothesis to determine whether the stock prices behavior follow random walk hypothesis. And this research uses statistical tests based on the active samples of stock in weekly data over a four year period. the results of analysis indicate that no stock conform to the weak-form efficiency market hypothesis. Through the analysis the performance of the trends of stock market of China , we can understand the investors behaviors and determine the investor's confidence in the market, and to make recommendations for improving the efficiency and transparency of the securities market in China. |
| Year | 1995 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-95-77 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration in International Business (Publication code = SM) |
| Chairperson(s) | Pandey, I.M. |
| Examination Committee(s) | Gupta, Jyoti;Tang, John C.S. |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1995 |