Chinese Stock Market Bubble And Value Investment Strategy Research

The interpretation of the stock bubbles is still strongly debated recently .Thevalue investing has great fame due to the blast of the web bubbles after 2000.This paper studies the law of the stock bubbles on behalf of investors so as toadopt value investing respectively. The structure is as following:Section one introduces the concept, run principles, and influence of the stockbubbles. Section two shows the explanations of the Chinese stock bubbles thatoriginate from the psychology of the investors, the investing method and the marketsurroundings. Section three summaries the value investing and key performance,analyses the value premium. In conclusion, we prefer to the value investing strategyin Chinese market currently.