Author(s)

Qizong Yin

Corresponding Author

Qizong Yin

ABSTRACT

China's securities market is an emerging market, especially the stock market is still in a primary development stage. Although it has achieved remarkable achievements, it has not yet matured in many aspects, and some new problems have been exposed. One of the outstanding problems is that China's stock market has shown obvious irrational characteristics. This has become a very important issue affecting and restricting the further healthy and stable development of China's stock market. Therefore, investment practices in China's securities market need to consider psychological and behavioral factors. Based on the actual situation of China's securities market, this paper systematically discusses the various psychological and behavioral biases of investors and reveals the behavioral subjects based on behavioral finance theory and the analysis on irrational characteristics of investor behavior. In addition, this paper also demonstrates the herd behavior of China's stock market through empirical analysis.

KEYWORDS

Behavioral finance, herd behavior, empirical analysis