The Analysis Of The Behavioral Characters Of Chinese Security Market Based On Behavioral Financial Theory

Behavioral Finance is a new developing theory that is rising in eighties 20th century. It integrates many research fruits of psychology, sociology and anthropology, etc. and erects a set of descriptive models exactly reflecting decision-making behaviors of investors and market running status. It can interpret abnormal phenomenon which classical finance theory failed to explain and that showed its powerful vitality. Although this theory still has many limitations in theory system and model constructions, and it also needs further improvement, it is worthy of our researching on the behavioral characters of Chinese security market. This paper focuses on this and discusses the function mechanism, gets knowledge about special market in our country, trying to bring forth my own opinions on the reform of investment and security market.This thesis has five parts:The first part reviews the development of the behavioral finance theory;introduces the foundation and models and points out that the theory accelerated the development of the financial theory in three aspects: function, theory and technique. And then shows the writing clues of the thesis.From the second part to the fourth part, it introduces the investors' instances and behavior characters of the Chinese securities market. Then it makes empirical studies on the investors' behavior of the Chinese securities market in views of the behavioral financial theory. It also analyzes the factors infecting the investors' behavior of the Chinese securities market.The investment strategy based on behavioral finance for reference is showed, facing to the special background then. And some opinions on the reform of investment and security market are taken out in the last part.