It started at 1200 in June 2006 and closed above 6 120 on June 6, 2007. The historical high point in the past is far away, and the cumulative increase of the Shanghai Composite Index has exceeded 5 10% for more than a year. This round of market rise should be regarded as the most violent in history.

There are many factors that form a bull market, mainly including the following aspects:

① Economic factors: the increase in profits of joint-stock enterprises, economic prosperity, falling interest rates, the development of emerging industries and moderate inflation may push up the stock market price.

(2) Political factors: The share reform of the government policy makes the holders of bulk stock prices have rich profit opportunities.

③ The factors of the stock market itself, such as the upsurge of fund issuance, the market trading income of speculators and the large-scale buying of stocks, can all trigger a bull market.

Therefore, after a large amount of capital keeps flowing into the stock market, the powerful driving force of capital is that the stock market keeps hitting new highs, thus creating one super stock market bubble after another, and listed companies overdraw their profit expectations in the next few years or even longer, which determines that the stock market bubble will burst;