Study On Measure And Formation Causes And Countermeasure Of Chinese Stock Market Bubble

Stock market is a main part of the financial market,which plays an important role in the economic development.Due to the economic growth and government policies,the stock market in our country developed rapidly since its establishment,and the scale of the market expended quickly.These phenomena led to stock market bubbles,which influenced the economic development and the stock market itself.In fact,the existence of moderate stock market bubble is conducive to facilitating the function of the stock market,and it provides support for the economic development.Therefore,this paper presented an overview of the development of the Chinese stock market and previous bubbles,and did research on the degree of the current Chinese stock market bubble and its impact on the economy.On this basis,through analyzing the factors which influence the formation and operation of market bubbles,the article proposed some controlling measures in order to maintain a moderate stock market bubble.According to the arrangement of the content and the structure,this study included four parts.Firstly,this paper reviewed the background and significance,the intension of the stock market bubble and related theories,as well as the domestic and foreign research situation.Secondly,on the basis of reviewing the development of the Chinese stock market and previous bubbles,this paper summarized the characteristics of bubble and illustrated its existence.Thirdly,the current bubble was studied,which included two aspects: the first was estimating the intrinsic values of each stocks in use of the improved F-O model,and comparing the intrinsic values to the actual stock prices to evaluate the degree of the current stock market bubble;the second was discussing the influence of the existence of the stock market bubble on the economy under the current stock market development and the outside economic environment,and concluding that the current stock market bubble must be controlled.The last part analyzed the factors affecting the cause and control of the stock market bubblewith some mathematical methods.Based on these findings,the study put forward some reasonable suggestions.