China's Investment Strategy Research Under Different Market Efficiency

Nowadays in Finance study field, there exists a heated competition between classic and non-classic theory such as behavioral finance, nonlinear science, non-perfect information theory. Finance study develops in these challenges. These competitions mostly focus in EMH. In fact, we have diffirent understanding and conclusion of finance study in different levels and views, but we'd better have a comprehensive study about all these theory and get the reasonable part of them, especially in China's stock markets which have great differences compared with other country's mature stock markets. In this article, we'll make a comprehensive study of the effectiveness of China's stock market by behavioral finance, nonlinear science, information economic theory and game theory.Because of China's unique characteristic in stock market and its investors, to find a effective investment strategy is allways very hard but important. In order to have an effective invest strategy in China's stock market, we should have a deep understanding of China's outside policy and it's economic environments. In this article, we'll make a deep study of EMH and China's characteristic in stock market, in the end, we take fund as an example, present some practical investment strategy in China's stock market. There are 8 chapters in this article.Chapter 1 is an introduction, it mainly introduces the background, study field and study objects. We also give the framework and the thinking line. In this chapter, some important concepts and assumption are given , and we introduce the study methods such as theory study and empirical analysis, by which we can get the perfection and completeness of the whole article.Chapter 2 is the effectiveness of the market and our multi-perspective analysis. First we discuss the definition of the effectiveness of the market and it's classification, then we analyse the effectiveness of the marketin different perspectives which including behavioral finance, nonlinear science, information economic theory and game theory. In the end we have a review of EMH and its empirical study.In chapter 3, we introduce the development of BF and it's investment strategy appliction. First, we introduce the environment of BF including the production of many finance abnormals and the development of nonlinear science, then we discuss the consistency of BF and nonlinear science, we also discuss some important theory and application of BF including investment behavioral model, psychology decision model. In the end we discuss investment of China's fund manager in the view of BF.In chapter 4, we make an evolutional game theory model to discuss China's characteristic in stock market. First, we discuss the basic model of co-operational to non-co-operational game, then, we study the characteristic of investors in China's stock market and the effectiveness of China's stock market. By this model, we make a conclusion that speculative investment strategy is the optimal compared with value-oriented strategy .In chapter 5, we mainly discuss the investment strategy application when the market is not effective. First, we introduce some non-effective strategy including technology analysis investment strategy and psycology analysis investment strategy, then we have a detailed discuss of the characteristics of China's stock market, in the end, we make an empirical study of the application of positive investment strategy in China's stock market.In chapter 6, we mainly discuss the investment strategy application when the market is effective. First, we introduce some effective strategy including index investment strategy and classic analysis investment strategy, then we have a detailed discussion of the semi-strong effectiveness and strong effectiveness of China's stock market, in the end, we make an empirical study of the application of effective investment strategy in China'sstock market.In chapter 7, we mainly discuss the investment strategy application when the market is weakly effective. First, we introduce some weak effective strategy including from the top to bottom investment strategy, from the bottom to top investment strategy and basic analysis investment strategy, then we make an empirical study of the application of weakly effective investment strategy in China's stock market.In chapter 8, we give some policy advice to improve China's effectiveness of the stock market such as to perfect the rules of stock market, improve the market efficiency, etc.