Efficient Market Hypothesis (Emh) in China’s Stock Market
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This paper illustrates the current macro environment and the stock market in China, and analyzes several stocks in the pharmaceutical industry, in which trials have been conducted with a virtual stock market based on real statistics. It is found that investors can get super profits by using fundamental analysis and investors’ preference will have impacts on stock prices. Stock prices can reflect the vast majority of information of firms and industries, but changes are partly caused by a mixture of random factors, including the capital structure and the disclosure of reliable information. Thus, strict regulations should be implemented, big data should be taken full use of and the structure of investors should be modified to improve market efficiency.
Efficient market hypothesis (emh), China’s stock market, COVID-19, Pharmaceutical industry stocks, Regulations and information disclosure