Journal of Stock & Forex Trading
Open Access
ISSN: 2168-9458
ISSN: 2168-9458
Department of Financial Economy, Jiujiang University, Jiujiang, China
Research Article
Bubble Measurement of China A-share Based on the Residual Income Model (RIM) and Discussion of Bubble Space under Efficient Market
Author(s): Zhang Yu*
The academic community is increasingly concerned about the relationship between market efficiency and the stock market bubble. Although they are interrelated, these two concepts are opposite. To gain a better understanding of this issue, a Residual Income Model (RIM) as used to estimate the intrinsic value and stock bubble rate of A-shares from 2001 to 2019. The analysis revealed that the historical bubble rate of A-shares is characterized by high volatility and often reaches a higher bubble range. The long-term bubble in China's stock market can be attributed to over-optimism among the public and improper regulatory intervention by the government, which acts as both a referee and a player. This type of self-interested regulation can negatively impact the effective functioning of the stock market clearing mechanism... View More»
DOI:
10.35248/2168-9458.24.11.266