The Herding Research In China's Metals Futures Market

In the field of finance, "the hypothesis of economic man" as the premise of the traditional financial theory,construct the mainstream traditional financial theroy as "Efficient Market Hypothesis" and "Random Walk Theory" and so on. Morden behavioral finance and a large amount of empirical studies show that in certain situation, for example', as the existence of asymmertic information,the individual decision mainly depends on the limited data,subjective judgment and experience.Meanwhile affect by the political,economic policy and market,when the investores relize that they can not make sure their investing behaviors'reliability by their limited capacity,the investores will ask the decision maker,expert,media or their own perception in heart for assurance.Therefore produced a irrational investment behavior,produced a herd behavior.In recent years, herd behavior of financial markets has been a hot issue in and aboard, but these researches focused on stock and fund markets, futures market, but less on herd behavior.In this article, overview the theory of herd behavior and on China's futures markets, analyze the performance of investors in the form of herd behavior; Secondly, based on the previous step, this paper pay attention to the behavior of Investors in the domestic futures, this paper study the herd behavior on the China's metals commodity futures markets, just as copper, aluminum and zincAdoption of the changes in market yields and the variety of the contract, see if the changes in yield varied linearly. The empirical results show that China's copper futures market, there is no herd behavior, while aluminum and zinc futures market exists herd behavior. In addition, the article analyzed the causes of herd behavior about the China's commodity futures markets, at the same time gives the corresponding control measures.Summing up in the end of this article and analyze the shortcomings and defects, and gives further research directions.