Analysis of Abnormal Phenomena in China Securities Market Based on Behavioral Finance
DOI:
https://doi.org/10.54097/j7bdtp80Keywords:
Behavioral finance, China securities market, AbnormalityAbstract
Compared with western mature markets, China securities market started late and has some obvious deficiencies, which leads to traders, especially individual investors, easy to make irrational investment decisions which cannot be explained by traditional finance. Based on the relevant facts and references, this paper believes that there are overtrade and exceptional open-style fund redemption in the fund market, dramatic fluctuation, and Irrational reaction in the stock market. The main reasons based on behavioral finance are: noise trading, herd behavior, prospect theory and disposal effect and overreaction. Finding out the typical anomalies and reasons of the two markets is conducive to study how to improve the efficiency and stability of China security market. This paper innovatively puts forward the background reasons and gives three suggestions in the conclusion: imitating trading, avoiding duplication of decision-making, and increasing the development of financial derivatives, which also has a certain reference significance for the improvement of policies and systems.
Downloads
References
China Securities Regulatory Commission. 2001 China Securities and futures statistical yearbook [M]. Shanghai: Baijia Publishing House, 2001.
Yu Dongming. China Securities Investment Fund Fact Book. 2021 [M]. Beijing: China Financial & Economic Publishing House, 2021.
Wang Lixin, Yang Yu. Beyond Rationality[M]. Beijing: CITIC Publishing Housing, 2022.
Wang Yanzhao. Research on the influence factors of open-end Fund Redemption — Based on the empirical analysis of the comparison between China and the United States [D]. Beijing: University of International Business and Economics, 2017.
Wu Suxia. An empirical study on the abnormal redemption of China's stock open end funds [D]. Southeast University, 2009.
Liao Aisen. Research on investor behavior of open-end funds [D]. Southwestern University of Finance and Economics, 2020.
Hu Jinyan. An empirical analysis of policy effect, policy efficiency and policy market [J]. Economic Theory and Business Management, 2002, V (008): 49 - 53. DOI: 10.3969/j.issn.1000-596X. 2002. 08. 009.
Hao Xu Guang, Zhu Bing, Zhang Shiyu. Research on the effect of China's securities market regulation policy -- Based on the analysis of questionnaire survey [J]. Management World, 2012 (7): 10.DOI: CNKI: SUN: GLSJ. 0. 2012 - 07 - 005.
Fischer B. Noise [J]. Journal of Finance, 1986, 41 (3): 529 - 543.
Song Jun, Wu Chongfeng. Research on Herding Behavior in financial market based on dispersion [J]. Economic Research Journal, 2001 (11): 7.
Tversky A, Kahneman D. Advances in Prospect Theory: Cumulative Representation of Uncertainty [J]. Journal of Risk and Uncertainty, 1992, 5 (4): 297 - 323.
Barberis N, Xiong W. What Drives the Disposition Effect? An Analysis of a Long-Standing Preference-Based Explanation [J]. The Journal of Finance, 2009, 64.
Shi Ge, Situ Danian. Greed and fear -- An Empirical Study of the disposal effect of investors in Shanghai Stock Market [J]. Finance, 2019, 9 (3): 7.
Zhang Jinmin. Research on Overreaction of China's stock market under asymmetric information [D]. Shanxi University of Finance and Economics, 2009.
Zhao Shouguo. Excessive speculation in China's stock market and Its Countermeasures [J]. Economic Perspectives, 2008 (8): 5.
Zhang Xinhong, Ye Chenglue. An empirical study on the policy effect of China's stock market [J]. Macroeconomics, 2012 (4): 5.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
