Irrational Games And Its Institution Foundation Of Chinese Stock Market

There are full of irrational phenomena in Chinese stock market, which is called policy market, speculation market or gambling market. Actually Chinese stock market has got into a dangerous situation, thereby it has been paid attention to how to pile out and walk up a broad road by all circles. This paper demonstrates irrational character of Chinese stock market, using several Stat. Index. Based on game method, it illuminates how irrational microbehavior of stock market come into being, and finds out that this is rooted in institutional disfigurement of Chinese stock market. So, perfecting institution should be the most effective prescription for Chinese stock market.