Bubbles are normal phenomena in stock markets，regardless of what kind of systems the countries practice.However，unlike some western developed and mature markets，stock market bubbles in China shows a structural operational defect，especially the institutional bubbles.There are many complicated reasons explaining these bubbles but these factors stress significantly different importance at different periods.Among them，the unchanged and determinant factor is the institution，more specifically，delisting system and the relevant administrative intervention as well as excessive local protectionism，which are the reasons why people chase underperforming equities enthusiastically and，whats worse，bubbles enlarge continuously.Therefore，one of the most effective ways should be to improve the existing delisting system，instead of increasing stock supplies，enforcing registration and short selling mechanism，or causing stock market plummeting deliberately.That is the key to transferring the chaotic Chinese speculation market into a mature and regulated investment market.However，it requires wisdom，decisiveness and courage of decision making and supervising departments to issue strict relative rules and regulations because delisting is an important adjustment of interest distribution.