Study On Behavior Mechanism Of Chinese Stock Market Risk Based On Investors Biased Beliefs

Behavioral finance theory of modern financial economics is a rapidly growing area of research, although the theoretical system is still being perfected, but it represents a major financial theory development, and has led academics and financial practitioners active participation. Many scholars have also continued to expand every branch of behavioral finance theory, in which the behavioral finance-risk theory development started, the behavioral assets-risk theory should be a need to pay attention to directions. View from the existing literature, international and domestic studies in this area still in its infancy. On the hope that through this article discussion, the preliminary analysis our country investors has biased beliefs, the behavior choice and the market risk , to further participate in the Chinese characteristic behavior finance research doing the preparatory work; in practice to reduce investor risk, improve the investment beliefs, against market risk as well as the financial market management, policy management and related asset management, to provide some theoretical discussion and useful ideas.In this paper, taking behavioral finance theory and the theory of capital markets research as basis, the behavior assets-risk theory as object of study, the main line for investors biased beliefs, this dissertation focuses on reseaching the following problems: risk of securities price behavior, noise trading assets-income risk, short-term transactions market risk mechanisms. from the theory , probes into the impact mechanism of investors biased-beliefs for their investment decision-making and thier acts of bias playing a role in market risk.The research result shows that, investors biased belief is an important source to produce behavior asset-risk, such as price fluctuation, investment losses, the noise behavior market risk.The main research work and research findings in the following areas:?This dissertation combs and reviews the development of behavioral finance theory and financial risk theory, the limits main concept's implication, elaborates China Stock market system and the investor behavior characteristic causal relation..?Structure of the Chinese stock market investors as the background, the improvement of DSSW model built based on the heterogeneous noise-based asset pricing and income risk model,and using the model show that Active noise traders on the promotion of asset prices and price volatility plays a major role,driving effects of the noise and benefits of manufacturing effects;when the two types of active and passive noise traders expect near-consensus,pressure effect of anti-noise and noise misleading effect,passive noise traders will face the risk of losses greater than gains; heterogeneous noise traders increased market volatility and affect other markets.?Construction of short-term investors trading behavior characteristic model, discuss the behavior of Chinese investors short-term trading mechanism of market risk, the results show that in the short-term trading behavior of asset prices contain information on the participants, all short-term traders have a positive feedback characteristics, batches of transactions push prices away from a reasonable level, the market as a whole produces the irrational consequences; the market will have a common short-term risks of asset bubbles, while the exogenous signals acting on the endogenous feedback mechanism will lead to collapse of the bubble; pursuit of the price difference is the main purpose of short-term investors, and the way the trade is the root cause of short-term behavior, rise and fall of prices will put pressure on traders, separate utility enable investors to ignore risk, short-term deal to have the same promotion for prices rise or fall; the investors reducing their short-term transactions will help to avoid market risks and improve the biased belief.?Analysis of securities price behavior based on cognitive bias, shows that the chinese stock market of cognitive-deficient and cognitive-attribution investors,the larger ratio of these investors and their more biased degree high, the securities price distortions and excessive volume price reaction, the stock market presents ups and downs of non-rational and sustained risk.?Discussion of Chinese investors of track trading patterns,by analyzing the investors behavior to tracking virtual phenomenon,show that the trading is a serious noise trading activity, the more attractive of the tracking object and the faster rise in asset prices, the trader bear all risks and more losses.