An Empirical Study On The Measurement And Reasonable Range Of The Bubble In China's A-Share Stock Market

Since the Tulipmania happened in the Netherlands in the 17^th century,both in developed and developing countries,the wide fluctuations in asset prices had become a common phenomena in the world economic activities,especially,in the stock markets.They repeatedly triggered the global financial and economic crisis and affected the development of world economy.People use "bubble" to address this economic phenomenon that the basis market prices deviate from the value.Because bubble has profound impact on the economy,a lot of economists are studying the problem.Based on the related theoretical research,this paper makes detailed analysis of the measurement and reasonable range of the bubble in China's A-share stock market.The author wants to combine the theory and practice to make some contributions to controlling the bubble in China's stock market.This paper consists of seven parts totally.PartⅠis preface.PartⅡ～Ⅲare theory basis.PartⅣis the core of this paper.In this part,the author does an empirical research based on the actual data of the China's A-share stock market and explains the result of the study.PartⅤis consist of the suggestions put forwarded by the author. PartⅥis the summarization of this paper.PartⅦis the list of references.In the view of the author,it is quite obvious that China's A-share stock market has lots of bubble.The main reasons of the bubble base on the inherent defects of the market and the low-quality of the enterprises and the investors.However,although the stock market bubble is harmful,it is also able to help the economy to develop healthily and quickly.Therefore,the government should control the bubble in a reasonable range rather than eliminate them.The author believe that it is a wise choice for Chinese government to build a stock market bubble control mechanism and implement a number of effective policies to manage the bubble.