Domestic stock market price shocks already, the debate whether the stock market bubble is also quite intense. From these observations that, saying there is no stock market bubble in China who basically is out of the market, whether the investment bank's researchers, or funds managers and stock analysts are so; and foreign investment bank researchers there is almost certainly the market bubble, but still within reasonable; and advocate the current stock market bubble are those more neutral scholars. However, in this view , no matter how intense the bubble debate, everyone in their particular point of view only in the discussion of these issues. look at problems from different perspectives, the conclusion Distinct.
If we look at just normal fluctuation of the domestic stock market index, then conclusions will also be quite different. because the basic principles of market economy, is to adjust the market price mechanism of supply and demand. the general commodity market is the case, the stock market the same way. That is, the domestic stock market since there are fast up period, there will be rapid decline in the same period, especially the decision of the stock market investors expect the price even more so. Since the rising and falling stock prices is commonplace, then the recent stock market prices, how surprising it?
However, with the sense of balance to look at the current domestic stock market, not that we do not need to understand the current stock market investors up and down the cause of a sudden, no one will lose market investors have suffered a crushing defeat. any of the investment market, is by or greed, the market will continue to be prosperous; is pessimistic if this force or fear, the market will be reversed.
investment boom will not only enhance investor confidence and expectations, but also will have access to investment are driving up market prices in order to attract more investors to enter. This cycle of herd behavior, but also will produce an infinite zoom mechanism. According to this theory, the stock market prices will lead to the initial rise even higher. This is because the increase in investor demand, rising prices would make the first feedback signal to a higher stock price. The second round of stock market prices will signal back to the third round of price increases in the stock market, and the feedback to the fourth round. In this case, the stock prices of the original signal is clearly infinitely larger, and have formed far beyond its own much larger price increases. But when once the market is worried about a reversal, the same investors fear the same will be magnified infinitely, which leads to the rapid decline in stock market prices.
from fluctuations in international crude oil prices in recent years, the rise in the international market and the decline in commodity markets also occurred in such a situation. China's stock market to rise in 2006, 130% within a year there are also serious speculation speculative component. Since the domestic stock market speculation is also a market, any investor would have to enter the market first, dramatic fluctuations in stock prices will be psychologically prepared . Do not ecstatic when the stock rose, fell, the way to conspiracy to blame others or the government's intent of speech.
the rise and fall since the index was normal, then the change in the stock market index should not be the objective of the Government's concern, nor did the stock market prosperity and development. The Government need to do is develop the system, rules to ensure that the market price mechanism to fluctuations in supply and demand around the stock, the use of an effective system of rules may face the risk of the stock market display disclosed, to ensure that lack of knowledge and information of financial assets, investors are violated in the interests of the manner of relief through the law of compensation, against the interests of others on the severe penalties imposed and so on. If so, the stock market and falling prices for the Government to not important.
for investors, especially small investors, the stock market must be dispelled that illusion can be rich overnight, got to give into the stock market will be able to earn full plate full of pots mentality, but should see the stock market has always been a high-risk market. In this market you may have a high investment rate of return, it may lose everything. If so, investors will be cautious not only face the high risk market, not because the stock market rise and fall and volatile mood.
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