| The resource allocation efficiency of China stock market is very important in our economy development. There is little positive research on it. The writer will do this work in this article.First, the writer constructs the method to calculate the internal return rate (IRR) of China A stock market and calculate the IRR from 1999, Jan 1 to 2005, Sep 30. The article contrast the IRR of China sort A stock market with the return of long-term national bond, the stock return of developed capital market, the development rate of Chinese economy. The result is the IRR of China A stock market at a normal level. But contrasting with the whole scale of our capital and other sort capital market, the efficiency of our stock market is still very low. The main cause is that the price Initial Public Offerings (IPO) is too high and the current-stock holders are lost in the game. Then, the article constructs Lorenz Curve and the Index of resource allocation efficiency and test China stock market. The second result is the internal allocation of China stock market is efficient. In the end, the writer analyses the results of the entire article. |
