An Empirical Analysis of the Efficient Market Hypothesis in China’s Stock Market

The efficient market hypothesis is one of the most important theories in finance. According to this hypothesis, a stock with sound laws, good functions, high transparencies, and extensive competitions, all valuable information timely, accurately, fully reflected trend prices including current future values enterprises. Unless there are manipulations, it would be impossible for investors gain more above average profits by analyzing former prices. Since has been introduced, become an interest empirical research security market. It controversial investment many evidences supporting also opposing hypothesis. Nevertheless, still holds status basic framework mainstream modern financial markets. By simulated transactions regard trading three different enterprises, paper verified that partially valid.