Research On Bubble Problems Of Stock Market In China

Stock market bubble is a common phenomenon of all stock markets in the world. The production reason is that stock prices can deviate its foundation value. Overseas may trace to the stock market froth theory research to the 20th century 60's. Although our country Stock market's development history still was short, but the stock market showed high speculative and the stock price froth characteristic which serious attacks investor's confidence and affects our country Stock market health and stable development. Therefore, whether the froth existed and how the froth degree, and the analysis to the stock market were regarding the policy making, and it had important influence to the monetary system reform.This article first elaborates the concept, the type and the fundamental research methods of the stock price bubble, and its general examination method. It then uses F-O model to carry on the measure to our country's stock price, and then combined with theoretical analysis methods of stock bubble and the actual situation of China's stock markets, analyzes the causes of China's stock market bubble from speculation, system and asymmetric information respectively. Finally, this article makes out relevant recommendations to guard stock market bubble.