Discussion On Chinese Stock Market Bubble

Based on the United States, Japan and Taiwan's stock market bubble analysis, this paper identifies some revelations for China's stock market. Firstly, we analysize the cause of two years' bull market. After that, the paper conducts an empirical analysis of China's stock market between the third quarter of 2005 and the fourth quarter of 2007 for both the qualitative and quantitative aspect. The results show that the bubble extent of the third and fourth quarter has been in a non-rational bubble interval in 2007. Then, after the stock market bubble burst in the first quarter of 2008, we analyzed the causes and hazards. Especially elaborate the harm for enterprises, social security and private pension funds owing to the bubble. Finally it puts forward some important recommendations and measures for how to avoid and control bubble.This thesis use the stock market bubble as the main clue, and its contents and structures are as follows: Chapter one is the literature review and research framework and methods; Chapter two describes the theory and history of the stock market bubble ,then compares the formation and breakdown of stock market bubble in the United States, Japan and Taiwan ; Chapter three analyze the cause for China's stock market ; Chapter four conducts an empirical analysis of the stock market bubble; Chapter five probes the harm for the stock market bubble breakdown; Chapter six put forward countermeasures in order to avoid and control for China's stock market bubble in the future;Finally, Chapter seven come to the conclusions of this paper.