introduced by insider trading or by rational anticipation. However, it may
reasonably be concluded that China’s stock prices reflect public information
inefficiently.
In this study, the random walk hypothesis tests show predicability of returns.
The seasonality tests show regular return patterns and the event studies display the
inefficient reflection of public information in the stock prices. Therefore, there are
opportunities to obtain abnormally high returns in China’s Stock Market by using
historical and public information. China’s Stock Market is neither weak form nor
semi-strong form effi ...
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