Study Based On The Investment Strategies Of Institutional Investors' Behavior

Subprime mortgage crisis in America brings about the financial systems' unrest in all developed countries. The turmoil is reflected not only in the closing down of the organizational investors with a long history and the effect in the other countries financial system, but also in the effects of the institutional investors' strategies. How to understand the development of behavioral finance and its defects? How to understand the momentum strategy effect and reverse strategy effect of the Stock Market's institutional investors in China and the relationship between both of the strategies? How to study the behavior strategy effects of Chinese institutional investors using quantitative method? The reform of the non-tradable shares is a major act on making up the defects of securities market in China. This action affects the financial capital investors deeply. What is the path of industrial capital investors affecting the financial capital investors, how to play the role, and how to exert the merits of strategy effect to develop organizational investors? Answering all these questions constitutes the clues and the meanings of this paper.The first chapter introduces the background, the evidences of selecting this title, the purposes and the meanings of the research.The second chapter reviews the behavioral finance theories of all scholars. We conclude that the behavior finance develops on the basis of the theory of modern financial theory, which is not in accord with the actual hypothesis conditions.The third chapter basically analyzes the behavioral strategies theoretically by behavioral finance. Firstly, we advance the definition and classification of investment strategy. Then, we carry out the research on the momentum strategy, contrarian strategy, cost Average strategy, time diversification strategy and small company Investment strategy from three points including definition, cause of formation and the newest study.The fourth chapter compares the developments of institutional investors in the developed countries, which possess their own characteristics. The development of organizational investors in U.S. is the best and the followers simulate the American path. First, we summarize the developing course: stage of developing bands, diversification of organization, securitization agency institution. Then, we analyze the development of the organizational investors in Japan. We believe that the government produces the emergence of organizational investors in Japan and the brilliant achievement in the middle of the last century. However, organizational investors declined because of the government lacking supervision. Finally, the paper discusses the developing process of the institutional investors in China and figures the characteristics including the development speed, the possession of the basic structure which is not perfect, and the rapid development of research and so on.The fifth chapter studies on the storehouse strands and the fund managers with empirical analysis. The results show that there are two strategic effects in Chinese capital market, momentum effect and reverse effect, which are precarious. We think we cannot weigh the two effects with time, because the different phases of market derive different time span and market concepts. Besides, the fund managers will adopt the most advantageous strategies, which are little related by steady time. The conclusions are demonstrated by empirical analysis.The sixth chapter studies the influence of industrial capital on financial capital after the stock all can be traded by introducing frames. The conclusion shows that industrial capital can significantly affect financial capital and the evaluation system of market has the tendency of declining speedy. We also believe that the all tradable stock is the important step in building perfect stock markets and the important channel in communicating the industrial capital investors and financial capital investors.The seventh chapter introduces the countermeasures for developing organizational investors, which include expanding the organizational investors deeply, constructing the correct value of cultivating organization investments, establishing the effective prompting mechanism for the institutional investors, exerting the role of organizational investors to improve the efficiency of the stock market.There are a few of innovations in the paper. Firstly, we find the common defects and overcome them, use the innovative index quantification to quantize the results of the Chinese institutional investors in behavioral finance strategy effect. Secondly, we discuss the relationship between the momentum strategy and reverse strategy deeply. Thirdly, we study industrial capital investors affecting the financial capital investors in all tradable environment using frames. Finally, we point the countermeasures from four angles, including expanding the organizational investors deeply, constructing the correct value of cultivating organization investments, establishing the effective prompting mechanism for the institutional investors, exerting the role of organizational investors to improve the efficiency of the stock market.