Chinese stock bouble 2007 - Research Paper Example

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Chinese stock bouble 2007

This led to the skyrocketing of trading volume, as retail investors sought to reap the benefits of the record-making rise. According to a 2008 report by Yao and Luo, the SSE had hit 6124.04 by October 2007 (10).  That this was a stock bubble, was not lost on analysts - vice chairman of the National People’s Congress in China, Cheng Siwei, was among one of the many analysts to point out that, following a year of volatility, the Chinese stock market was overheating (qtd. in Tucker & Dyer). Even though the government took steps to tackle the dramatic situation, it could not succeed in heading the bubble off. By the end of 2007, the stock bubble had ‘burst’ - the SSE Composite Index began to see a fall right after October 2007 and, by the middle of 2008, had plunged to a shocking 2651.6 1 - less than half of what the index had been at its peak (Yao and Luo 7). This paper looks at this stock market crash - also known as the Chinese Stock Bubble 2007 - in detail, outlining what it was, the reasons because of which it occurred, and its effects on economic conditions within and outside of China. ...
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Chinese Stock Bubble 2007 Reasons, effects and recommendations Group member 1 Group member 2 Group member 3 Submitted to: and code TABLE OF CONTENTS In the past five years, some of the largest stock markets have been subjected to asset pricing bubbles; these have included stock markets in developing markets like Brazil, Russia and India (“How We Explain the Chinese Stock Market Bubble” 1)…
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