A Research On The Problem Of Stock Bubbles In China

Stock bubble harms to the healthy development of economic entities. In view of the stock market with traditional theories of the stock bubble, the paper do an in-depth study on China's stock bubble in the theory of empirical, qualitative and quantitative analysis. Firstly,The article defines the rational and irrational bubble in the stock market in the process of the bubbles generated by the two-stage. The stock market bubble is a double-edged sword, at the same time it plays a positive or negative role to economic growth.Secondly,the article tells a rational and irrational understanding of the bubble on the basis of P/E-CAPM on China's Shanghai and Shenzhen A-share datum for testing and calculation. The next I have made a factor analysis and discussed the reasons of two periods on China's two stock market bubbles as I have demonstrated.Finally,on the basis of theoretical analysis, empirical testing and the reasons discussed,the author appeals to take several measurements to deal with non-rational bubble, accelerate the structure of healthy, rational and effective market.