Study On The Efficiency Of Chinese Stock Market Based On Data Mining

Stock market has always been regarded as the “weatherglass” of macro economy,and it is not only related to the stability and health of our economy,but also to the interests of thousands of ordinary investors.However,some of problems are holding back the development of stock market and reduce the effectiveness.Therefore,this paper uses data mining technology to empirically study the effectiveness of stock market in China,and proposes concrete and feasible policy recommendations to solve these problems.First of all,this paper not only summarized the research background,the research significance,the research status at home and abroad,but also introduced the research content and empirical methods used.Besides,The relevant theories and concepts involved in this study were described in detail,which laid the theoretical foundation for the post.Secondly,it introduced the development history and current situation of stock market in China,then analyzed the existing problems in our current stock market,such as herd behavior,systematical defects and so on.Then,this paper sorted out the relationship between these problems and stock market efficiency,in other words,the stock market in our country was not as effective as expected due to these problems,which prepares for the empirical foundation of the following text.Thirdly,by constructing a stock technical index system and establishing a decision tree model to classify technical indicators to find the characteristics of random walks in stock prices and determine whether our stock market has reached a weak form effective state,on the basis of reaching a weak form effective state,this paper continues to test whether our stock market has achieved a semi-strong level.In order to determine whether the stock market in China is semi-strongly effective,this paper established a macroeconomic indicator system and then introduced into the association rule model to tap the internal connection between share price and macroeconomic indicators in China.Finally,according to the previous analysis of status,problems and model,this paper concluded that the lack of effectiveness of the stock market in China is caused by a series of problems in the stock market.Therefore,in view of these problems,this article putforward specific countermeasures and suggestions from four aspects,such as using the government's power rationally,promoting the construction of information disclosure system,cracking down on insider-dealing,and enhancing investor's education.