Stock market bubbles are the important factor to induct the bubble economy and the continuously inflating stock market bubbles are an omen to the bubble economy.

Starting from the connotation of stock bubble, this paper puts forward its definition.

This paper points out mistakes i n som e present calculations of the stock b ubble in China,points out that the st ock bubble is the deviation of stock pric e to stock value,calculates and comp ares and analyses the stock bubbles o f China and some other countries,and put s forward so me measures for contracting the stoc k bubble in China.

From the observation of development history of our stock market, we can observed that the stock index fluctuated acutely and periodically, and stock bubbles permeated the market everywhere.

So we must find out a reasonable scope of bubbles in which stock market bubble has some positive effects without damaging economy.

Especially when the stock market bubble occurred, the impact will be even more serious and far-reaching.

Stock market bubbles are the important factor to induct the bubble economy and the continuously inflating stock market bubbles are an omen to the bubble economy.

And all the previous ripples of the stock market tell us that the stock bubble in the stock market has become an unslighting problem.

As an important indicator of measuring stock investment value and stock bubble，the Price to Earnings Ratio responds relative prices among different stocks．Undercommon conditions，the greater Price to Earnings Ratio is，the larger stock bubble is ifother factors remain invariable.