The Structural Bubbles in Present Chinese Stock Market and Countermeasures to Prevent and Control Them

In early May,2007,the Shanghai Composite Index and Shenzhen Component Index broke through the 4,000-point mark and 11,000-point mark respectively.So far there have been constant arguments in the theory circle on whether there are or not in Chinese stock market.Through the theoretical analysis,this paper raises a measuring standard of the and no bubbles,finds out that there exist structural bubbles in Shanghai and Shenzhen stock market,analyzes its cause and proposes that we should control the structural bubble according to specific stock.