The Discussion And Case Study On The Relevance Of The Stock Market And The Real Economy

After the subprime mortgage crisis, United States Dow rally continues and to regain pre-crisis levels. While the Shanghai a-share index rebound but only lasted less than a year and a long decline appears, the current shortfall crisis one-third. Moreover, the weakness in Chinese stocks that index has echoes of little more than a decade ago, an unprecedented lack of market confidence. Even more puzzling is that China’s economy despite the impact of the subprime mortgage crisis, but the real economy remains more than GDP7% high growth rates. In addition, after the 18, from macro-indicators such as GDP, PMI and CPI, signals the end of China’s economy has become increasingly evident. While China has only than the debt-ridden Greece for several consecutive years among stock markets in the world in the last paragraph.And, as an epitome of China’s stock markets-the sector, over the past five years also reflects a similar state of China’s economy, the fundamental way to good, but share price weakness, a change in 2007 led the index record leader temperament. News from the periphery, although Bank shares from a price-earnings ratio, price/book ratio, earnings per share and other indicators, can be said to be exceptional. But winding unfavourable expectations to the Bank of China all the time and really hindered the enthusiasm of investors. Starting from 2010, Europe’s debt crisis worries, America’s debt crisis shadow, shadow banking platform for risk, debt burden, on Bank accused of monopoly charges, and so on. Many negative information will undoubtedly gradually dilute the fundamental advantages of the banking sector. In contrast, United States, Apple, for example, record market capitalisation of its shares was highest in US stocks. But with the death of Steve, Apple shares and the market started to go down from the altar. Therefore, I believe that behind the share price of a company, the fundamentals are important factors, but investors’expectations will undoubtedly affect the share price, and conduction of macroeconomic. I integrated the rational, and based on market realities in the development the individual perspective in this view is modified. In addition, according to the characteristics of stock market in China, namely, stock dividend mechanism and future non-lifting is still a big pressure, investors trading in the secondary market as a "luxury" will, in turn, Modigliani’s permanent income theory to analysis of medium and small investors in the stock market. Therefore, one of the most important innovations is the stock trading in China’s stock market in the secondary market, from consumer found some theoretical explanation, in line with stock trading on the secondary market do not belong to the economic significance of investment, and from a new perspective of a far-reaching impact on the performance of China’s stock market investor behavior. Study on the performance of the stock market, especially in the secondary market price performance, and not just from the investment theory, but has added relating to consumption levels of thinking.In addition, the Chinese stock market itself is still very young, from 1990 to the present, but for more than 20 years. But over time, their shortcomings exposed by China’s stock market has become increasingly evident. That makes some great potential, fast-growing, emerging enterprises, represent China’s future economic trends and high technology enterprises may not migrate, finance stock markets outside the Mainland. Us listings become main trend emerging enterprises, so choose a quite secret contacts with mainland United States stock market as an important point of reference. Data referred to therein, the section on China’s stock markets, mainly from flush with financial services network databases, and the China Securities Regulatory Commission, and drawn by myself on finishing, while the United States according to flush most of the part of the financial figures released by the service network, as drawn by myself on finishing. On the third part of the analysis of specific cases, mainly between 2013-2014 China Securities media authority (the China Securities News, Shanghai Securities News, the securities Times newspaper, the securities journal) published the latest, most authoritative case.Market performance of China’s stock market and China’s economic fundamentals seems to be way off, but from the perspective of consumption combined with China’s specific system and case, we can find the rationality behind this phenomenon. This phenomenon does not reflect the inability of the market, on the contrary, precisely reflects the inherent rationality of the market mechanism, so as to enable the relevant authorities to adhere to the general direction of the reform of China’s stock market. In short, behind China’s stock market appears to be irrational, actually contain rational elements, the market is always right.