The Evolution Of Chinese Stock Market System And The Strategies Of Its Development

This paper firstly studies the true development course of Chinese stock market. From the overall context of the development of China's stock market,study its size, structure and the evolution of its regulatory. Then use the shanghai index for the study of the effectiveness of Chinese stock market evolution, with autocorrelation test, runs test. We found that Shanghai stock market has not reached the degree of weak-form efficiency, but the latter is more close to the weak form efficient market hypothesis than the previous period. Establish the DEA model to measure the performance of China's listed companies with specific financial index of these companies as the research data,to compaire their performance before and after Initial public offering. The results showed that the sample of listed companies post-listing performance is not satisfaction, the effects of China's stock market on the listed companies is not obvious. Then based on systems science in the structure, introduce the concept of fractal and chaos, get the Hurst exponent of shanghai stock market's Logarithmic return series is about0.6474 by R/S analysis method, which shows that fractal characteristics of shanghai stock market, and about one and a half cycle years of long memory; used the method of re-contraction of phase space found that Shanghai Stock attractor dimension converges to 1.355,which means that Shanghai stock market has chaotic, establish dynamic system of it at least need two variables; the max lyapunov index of System is 0.003,which is corroborated the one and a half cycle years of long memory get from R/S analysis. Conclusion from Amount of the principal component analysis insists the Chaos feature of Shanghai Stock Market. With the change fractal indices of China's stock market, it becomes more and more like random walk, which is gradually strengthening its effectiveness. The fractal and chaotic characteristics of Shanghai stock market reveals the nonlinear nature of Chinese stock market, and it is more conducive to the development of countermeasures under the view of non-linear. Lastly based on the empirical findings from Effective and Fractal Market Hypothesis, discusses the policy and recommendations of China stock market.