Research On Stock Market Bubble Of Growth Enterprise Board In China Based On LPPL Model

The theory of stock market bubble is a new part in modern financial theory system. In worldwide, the stock market have both developed market and developing market. Different market bubble have different characteristics. Thus, the theory of stock market bubble have significant improvements still to be made. In China, to a certain extent, the o penning of the Growth Enterprise Board in October 30,2010 have solve the finance problem of both high technology and high growth enterprises, boost the change and improvement of industrial structure, promote the development of high and new technology enterprise, and also open up a new investment field in capital market. So the Growth Enterprise Board have a great impact on deepening the capital market, transferring economic growth, improving the multi-level capital market.However, in recent year, under the rapid development of Growth Enterprise Board, the market have several trends of bubble burst.These have negative impact on the development of capital market,macro-economy,wealth distribution. Thus, the study of the Growth Enterprise Board market bubbles is necessary.This paper is study the phenomenon of the bubbles in Growth Enterprise Board. First of all, we introduce the concept of stock market bubble, the existence of stock market bubble, the reason of bubble burst and also a variety of models of stock bubble theory. Secondly, the author divide the stock market bubble theory into three stages, which is followed by Rational bubble theory stage, Non rational bubble theory stage, Log-periodic acceleration power law theory stage. By fitting the Log-Periodic Power Law equation to a financial time series, it is possible to predict the event of a crash and the trend of Growth Enterprise Board next year begin from the end of august 2014, and also to provide reference for the majority of investors. At the same time, the author calculate the bubble concentrate with improved F-O model. In the end, the author give advice on how to avoid the Growth Enterprise Board market bubble.