Chinese Securities Investment Research Based On The Behavior Finance

As an emerging market, Chinese securities market is still in an early stage of development, particularly the stock market. Although obvious achievement has been gained after 10 years development, it's not yet mature enough in many ways, new problems emerged gradually. And the outstanding one is Chinese stock market has shown the obvious characteristics of the non-rational which has become an important problem effects our stock market to develop healthy and steadily. So it's necessity to take psychological and behavioral factors into account in the investment of Chinese securities market. The behavioral finance is just a subject.Behavioral finance originated in 1950's and revived in 1980's.To aim at the defects of the traditional models, behavioral finance analyzes financial and economic problems from a new angle. According with the fact of finance market, limited rationality hypothesis of this theory is more suitable than the entire one in traditional theory, and marketing phenomenon can be explained by it to a large extent. Compare with the rational analytical frame of standard financial theory, behavioral finance pays more attention to the person's real psychology and economic behavior, which can provide for financial decision close to realistic guidance.This paper starts from the actual situation of Chinese securities market, discussing with all psychologies and behavioral biases of investors systematically on the basis of the theory of behavioral finance, through analyzing the behavior of investors, reveals the non-rational characteristics. The paper also summarizes the main investment strategy of behavioral finance, giving detail analysis to some behavioral investment strategies together with the actual characteristic of Chinese stock market, summing up the process management of this investment strategy. In addition, the paper also adopted the method Empirical Analysis to demonstrate the herd behavior in Chinese stock market. And in the fourth chapter, the reverse investment strategy in Chinese securities market has been empirical studied, and draw to a corresponding conclusion.