Policy Of The City The Context Of China's Stock Market Investors Herd Behavior Research

Firstly, the "policy market" phenomenon and the concept of herd behavior and classification are reviewed. Combined with the development of China's stock market to the way the questionnaire, the "policy market" phenomenon and investors linked to herd behavior. Finally, the policy impact of confirmed investors will make the same investment behavior, the herd behavior.Quantitative research-based methods, according to the different empirical object, the selected data includes at Shanghai Composite Price Index, the CSI 300 index stocks and the background of a brokerage transaction records. Empirical research methods include autoregressive conditional heteroskedasticity model, CSAD method and the event study method, the first two were on the policy of the city and the herd behavior was confirmed, which will link the first two. The findings of empirical analysis:China's stock market continue to be policy. As can be seen from the empirical test, the state of macroeconomic policy is still the stock market price fluctuations lead to a very important factor, which indicates that China's stock market has not completely free from the shackles of the policy, the policy response is still sensitive. Policy factors on the degree of influence in a short time the stock market is still large; of the stock market "policy market" phenomenon has changed from the previous administrative measures to interfere with the fluctuations caused by economic policies into the normal conduction; and there are sheep in the stock markets behavior.Then discusses the causes of herd behavior, the author of psychology and behavioral finance as a tool for specific combination of factors in China's stock market policy of the more obvious characteristics, research analysis, investor communication produced by the infection, herd mentality and group psychology and other psychological factors, so the identity of their investment behavior. Then, in view of the characteristics of the story, from the administration, exchange and investors point of view three aspects proposed.Finally, the paper analyzes the main herd behavior to the stock market to bring in all the different Inspiration:sometimes need to be used, more is needed to weaken it. The status of herd behavior in our country, put forward countermeasures and suggestions, focusing on the behavioral finance several investment strategies. Obviously, only reduce the herd behavior of traders, the market can absorb the information more fully and to be more effective operations, thereby bringing more benefits to the whole community.