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increase of 3.88 times in 1991, the psychological impact and funds pressure on investors were huge, the stock point slipped to 393 points, appeared the first “bear market” in Shanghais stock market, but rebounded very soon. In the end of the year, the Shanghai index closed at 780 points. Just as Figure 1 shows.

Compared with foreign countries， China stock market is still in its infancy, investors have a strong speculative mentality, whose motivation to enter the market dominated mainly stroke difference price. Any sign of trouble in the stock market, then popped up to buy and then sell, chasing the prevalence of trading in the stock market is extremely active, thus causing the stock market boom and crash. The basic rule of China stock markets generally is: If the price could skyrocket, certainly will be fallen to push hard; and the bottom target of bear market is generally fallen by over 50% of the bull market peak. During the period more than 20 years of development, the China stock market has experienced six big boom and crash, but the index is upward mobility in the overall trend.
China’s stock market is the hope of worlds stock markets over the next 10 years. Because the worlds hope is in emerging markets, while the Shanghai and Shenzhen stock markets account for a large weight in emerging markets. In addition, long-lasting bull market can be a fundamental factor because of that China can get sustained economic growth. If China’s GDP to maintain growth at 8.5% or more, then the 10 years bull market will not change, China’s stock market will be long term upswing.
1.3.2 The Characteristics of China’s Stock Market
After more than ten years’ development, Chinas stock market has grown from a small pilot-market into a large scale one. Although some problems have appeared in the period, the general development tendency of Chinas stock market is favorable. The role of stock market in national economy has become more and more important.
The characteristics of China’s stock market:
1. a young stock market
The development of Chinas stock market is only 10 years of history. Compared with the advanced or mature capital market, Chinas stock market is still very young from the time point of view.
2. a speculative stock market
Capital market in any one country has a characteristic of long term investment and short term investment; there is investment and speculative characteristics of the Chinese stock market. However, there are less long term investors but short term investors in Chinese stock market, which with more great speculative operation in operation.
3. a government policy of stock market
From the date of the birth of Chinas stock market, the problems came out in the stock markets development and operation, the hope of solution all lies in the Government intervention. So far, the stock market issues which still need government and the relevant functional departments shot solution still can not rely on the operation of the law of the market itself to resolve. As a result, a specific word “policy market” comes out into public view.
4. a means of misappropriating in financing
As a capital market, the capital function of stock market is the ability of enterprises to raise funds in the market, to achieve the purpose of developing enterprise. On an objective point of view, from building the market, the development and solution of problems of state 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。