Empirical test for bubbles in Chinese stock market

摘要

In this paper,we estimate the bubbles of equity in Chinese A-stock market.At first we calculate the fundamental price by real option model.Then,we estimate the bubble by OLS model.We find that the market equity value is affected by both the theoretical equity value (fundamental) and common beliefs.Generally speaking,investors do rely on the fundamental when estimate the corporate value.But at the same time,common beliefs also play an important role here.