Contrastive Analysis On American And Chinese Stock Market

Since the early 20th century, created 90 years since China's stock market continue to develop and perfect, but compared with developed countries, there are still large room for improvement. China's stock market started late, the lack of reasonable and effective investment guidance and market behavior. In recent years, there have been over-investment and market operation of the market volatile immature behavior. To some extent this reflects the irrational behavior of investors. Which led to irrational behavior of investors is one important reason is that an investor's investment objectives based mostly speculative. This article will feature China's stock market speculation in depth.2007-2008 U.S. subprime mortgage crisis caused by the outbreak of the global financial turmoil, the global stock market has experienced an unprecedented disaster. Whether it is United States, Japan and European countries represented by the mature stock markets, or to the BRIC countries as the representative of emerging stock markets, all have lived through the baptism of a unilateral market slump. The total global stock market lost more than USD 20 trillion, equivalent to 1.5 times the United States in 2008 GDP, far more than economic loss caused by the Second World War. Many countries suffered different degrees of economic stagnation or even recession, the world economy is facing a severe test. The face of this rapid financial crisis similar in all countries have taken remedial measures: U.S. $ 850,000,000,000 bailout measures; EU member states trillion euros major financial rescue plan; Japan's 30 trillion yen economic recovery plan; 4 trillion Yuan in China's government investment. However, it is followed by a huge increase in national government deficit, trade protectionism. However, the world economy in 2009 is only a slow recovery, the situation is still not optimistic. In fact, the culprit causing this situation today, global stock market is a speculative bubble burst.In which representatives of China as an emerging market stock market is experiencing an unprecedented stock market crash. From October 16, 2007, the Shanghai Composite Index from 6124 points in the high ground all the way down, dropping 29 October 2008 of the 1665 points, in just a year plunged 73%, the market value of more than 20 trillion yuan ashes, the total loss of GDP, in 2007 China accounted for nearly eight percent. As a representative of the mature markets of the U.S. stock market, from 1 October 2007, the Dow Jones index of 14,087 points from the highest high side down, fell March 6, 2009 in the 6626 point year and a half has plummeted 53% in. However, "looks beautiful," the Chinese stock market birthplace of the subprime crisis than U.S. stock prices fell even more than 20%. The face of these shocking events and data, one wonders what causes this gap? In fact, China's stock market dive caused by the reasons are complex, and institutional shortcomings on the Chinese stock market, stock split, "the size of non-" lifting of the ban timing, corporate governance, investors over-speculation, false media reports, and so the problems caused by never ending debate. But there is no doubt that China and the U.S. stock market speculative bubble size, nature is the main reason for the difference. Therefore, this problem is the main U.S. stock market speculation and the Reasons.The first part mainly about literature and comparative analysis method for identification of such a speculation, a clear definition of speculation and investment relationship, study the investment rational and irrational; the same time, the classification of the stock market are described, analyzed the speculation The role of the stock market. The following basis for the study of the study.The second part describes the first bubble, respectively, speculative bubble, meaning the stock market speculative bubbles, an indication of speculative bubbles, development, peak and break with the cyclical nature of the stage, and comparative analysis with the economic cycle, which Screening to determine the quantitative criteria of speculative and speculative to establish the appropriate model.The third part mainly empirical analysis and model analysis using two methods of Chinese stock market and specific analysis of the U.S. equity market. First describe the Chinese stock market, and by analyzing the price-earnings ratio, turnover of the three indicators to analyze the stock market in China. Second, analysis of the U.S. stock market and the characteristics of the U.S. stock market, which focuses on analysis of the U.S. stock market continues to rise and bubble.Comparative analysis of the final paper of the Chinese stock market and the U.S. stock market speculation and the causes of the differences, which gives inspiration to the Chinese stock market and countermeasures and concluded.