Research on A-share Stock Bubbles of China Based on Rolling Investment Strategy

Using the developed discounted dividend share intrinsic value model and the derived formula of levels of stock market bubbles,this paper calculates the rolling investment bubble levels of the A stock market of China over 1-15 years and 12-180 months and finds the following results: the A share prices fluctuate along the value line in short-term periods,the longer rolling investment periods,the smaller bubble levels of A share market of China;the higher levels of bubbles of A stock market of China in the early years and months diminish with the rolling investment periods becoming longer and longer;the curves of bubbles levels of A stock market of China become lower and steady under the intrinsic value o line with the rolling investment periods becoming longer;speculators may do no harm as bubbles on a steady stream of enterprise,the bubble levels will come down with the time passing by on a steady stream of enterprise.This paper has important implications for the government and guiding the investment of investors.