Study On The Developing Situations And Formation Causes And Control Of Chinese Stock Market Bubbles

With the expansion of the stock market,there have been accumulated quite a lot of bubbles in China stock market. The stock market bubbles have very important effect on the regular operation of a national economy.If once the bubbles break in some day,it will surely lead to the great financial risks and economy decline.So it is necessary for us to study the bubles in our country's stock market.In chapter one, we reviewed the relative theorys concerning stock market bubles,such as Rational Bubbles theorys,irrational bubles theorys and some measurements to test the bubles.In chapter two,we introduced the definition of stock market bubles and then analyzed the mechanism of its formation under the supply-demand theory.In chapter three,we studied three cases concerning stock market bubles,from which we infered some main causes forming stock bubles and countermeasures.In chapter four,we reviewed the bubles situation in our country's stock market. We also tested China stock market with the methods of Tobin Q Ratio and relative growing ration of stock market.The conclusion is that China stock market was full of bubles.In chapter five, we analyzed the reasons of forming China stock market bubles.These reasons included the shortage of portfolio,the expansion of demand for stocks and imperfect market. Finally,in chapter six we submited some feasible suggestions and countermeasures according to the characteristics and causes of China stock market bubbles.