Abstract: This paper constructs the bullish-bearish traders' model based on the viewpoint that the market price is the results from the interactions of bull-bear heterogeneity trades. Then it uses the conception of relatively efficient market as the basis of empirical testing. It finds tant the non-tradable share reform improves the operating efficiency of China's market and raises the relatively efficient of China' s market by using Chinas stock market data However,the findings also show that China's market is still less than market effciency and we should push the building of system in order to further improve the effectiveness of the market

Key words: bullish-bearish traders, the relative effectiveness of the market, non-tradable share reform