Education, Science, Technology, Innovation and Life
Open Access
Sign In

Empirical Study on Excessive Fluctuation of Chinese Stock Market Based on Behavioral Finance Perspective

Download as PDF

DOI: 10.23977/edms.2019.009


Yilun Yang

Corresponding Author

Yilun Yang


This paper explores the internal causes and characteristics of the excessive volatility of China's stock market through empirical research on the correlation between China's stock market index and the intrinsic value of listed companies. This paper finds that the volatility of the stock market index is seriously deviated from its intrinsic value volatility and does not conform to the interpretation of stock market volatility by traditional economic and financial theory. Based on the perspective and method of behavioral finance, this paper explains the reasons for the excessive volatility of China's stock market through noise trading, investor psychological bias and herd behavior theory, and discusses the establishment of China's securities market stability and balance mechanism from macro, micro and personal aspects, and put up with policy recommendations for excessive stock price volatility.


Behavioral finance, Excessive stock market volatility, Stock market intrinsic value, Policy recommendations

All published work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2016 - 2031 Clausius Scientific Press Inc. All Rights Reserved.