Positive Research Of China's Securities Market Investor's Behavior

As the role of the securities market, investors tend to make decisions according to the information of the market. Meantime, their perspection of the economy will affect the stock price through their investment. That is to say that the investment itself will affect the stock price and the efficiency of the sercureties market. So it's very important to study the investors' behavior.Keynse is the first economist who study the securities-investment, and he study it from the aspect of psychological elements in the cycle up and down of stock market. He come to a conclusion that investors buying stocks is just like "selecting beauties". Markowitz"s Optimal Portfolio Selecting theory and Eugene Fama's Effective Capital Market Hypothesis are based on the hypothesis that investors are rational, and only this kind of investors can survive in the market.However, investors are always irrational in fact when they make decision, and they tend to over-react to the infofmation. This results in the diveden-premium puzzle, equity-premium puzzle etc., whose result is different from the Rational Man and Effective Market Hypothesis. Traditional financial theories can't explain the przzles, but the behavioral finance theory does.Behavioral finance theory use the method of psychology, sociology and anthropology to study the behavior of investment and esplain how investors deal with the informationg and act. The result indicate that investors will makeunreasonable decision because of their different psychological features and knowledge diveation, which will affect the effectivness of the market.China's securities market was established about 14 years ago. It's still very young contrast to many countries'. People analysis the market still focuses on the aspect of technology, market, occupations and corperation, and be shortage of investors' behavior. So it's meaningful to adopt behavioral finance theory to study China's inevestors in the securities market.I have been worked for a securities corperation for 3 years and gotten a lot of first-hand materials. I sample Sichuan securities market to study the charachateristic of the investors and its effect on the securities market, learning from some native reaseach and using those materials. In this article, I have used qantitive, positive, sample survey, random walking model and statistical reasearch method.The structure of the article are as follows:The first section of the artical analysize the achievements and shortcomings of traditional finance theory.In the second section, I introduce the advangtages of behavioral finance theory on how to analysize investors' behavior.In the third part, I study China's securities market by using positive research method, based on traditional financial theory and behavioral finance theory.In the last part, I give some useful suggestion to China's securities market on how to conquer the incorrectness of knowledge and investors' psychological diveation.