Chinese stock bouble 2007 Research Paper example
Undergraduate
Research Paper
Finance & Accounting
Pages 7 (1757 words)
Download 0
Chinese Stock Bubble 2007 Reasons, effects and recommendations Group member 1 Group member 2 Group member 3 Submitted to: Course title 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)…

Introduction

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. ...
Download paper
Not exactly what you need?

Related papers

stock project
The company has acquired you tube and feed burner making it easier to access entertainment through the web. It has also acquired documents termed as jotspots, spreadsheets i.e. the 2web technologies and presentations called zenters. Google Company believes in working in a fun environment to develop technology. It also aims to synchronize the information from different companies. The information…
Value Stock Versus Growth Stock
In real world, there are more risks involved than just one of type of risk. Market sensitivity is an important risk but that cannot alone be used in order to compute the intrinsic value of stocks and hence by relying on only this type of risk, we are actually making the things more simple than they really are and not accounting for important risk elements which lead to faulty analysis and…
Stock Analysis
On the other side, the technical scrutiny approach involves the analysis of a company’s stock price fluctuations only (Timo, 2009). Thesis statement: this paper seeks to analyze the stock price fluctuations of a given venture in the previous sixty months in order to find out its actual stock trend from accumulated data. In addition, it will conclude the venture’s market breadth for the last…
Testing Weak-Form Efficiency of Chinese Stock Market
A specific concern of this review involves the weak-form of market efficiency. Ho and Lee (2004) provided deep insights in this aspect, outlining background information as well as an outline of empirical evidences that defined, explained and determined weak-form efficiencies in stock market such as those in the United States. Chandra (2008, pp.423) also explained relevant hypotheses such as how…
STOCK EVALUATION
The company’s stocks are traded at New York Stock Exchange and it also forms one of the companies in Dow Jones Industrial Average, and the S&P 500. The company’s total revenue for the year 2011 was over USD 67.41 billon with a net operating income and net income of USD 12.75 billion and USD 11 billion respectively. Its total asset and equity for the year 2011 was USD 189 billion and USD 81.19…
Stock Market
The essay covers how the investor should invest the above amount, what reasons the investor has for choosing the stocks and the manner of investment. Also included in this essay is the detailed but precise analysis of the stock selected by the investor. The essay present analysis of the company whose stock has been purchased by looking at the historic performance of the company based on stock…
Evaluation of the Capital Asset Pricing Model (CAPM) Using Chinese Stock Market Data
23). It is worth noting that numerous empirical studies that have conducted in line with evaluating the model have proved to be in harmony with the CAPM principles; nonetheless, some of the similar evaluations have contradicted the model. Therefore, this paper aims at studying if the CAPM principles hold for the China Stock Exchange. Among other things to be included in the analysis, include: i.…