Qfii Investment Behavior And Its Impact On China's Securities Investment Behavior

China introduced QFII system five years ago, QFII has been closed to break the Chinese A-share market competition pattern of the past.The main players in the market structure, and investment sentiment and investment have also undergone a great change. Firstly, this paper analyzes the changes of QFII's investment behavior, investment idea after it entering from October 1, 2005 to March 31, 2008.Secondly, the herd behavior among of QFII is empirically tested. On the one hand, this paper uses the LSV model to empirical analyze the herd behavior and finds that there is a significant herd behavior among of QFII investment in the A-share market. Then, grouping under the shares, which QFII hold, the paper respectively analyzes the degree of herd behavior. The larger of scale companies, the more notable herd behavior among of QFII. The herd behavior of QFII in the history of the stock for the middle income is more obvious for the low- and high- yield type of stocks. The herd behavior among of QFII in metal, no-metal industry is highest, followed by in electricity, gas and water production and supply sector. On the other hand, this paper adopts the CCK model by the QFII holding samples and the stock market samples for comparison, the study also finds that either Shanghai or Shenzhen, when the market rises, there is a significantly herd behavior among of QFII, but when the market falls, there dose not exist significantly herd behavior among of QFII, further study finds that the degree herd behavior among of QFII has no great difference to the degree of the our stock market's herd behavior. In other words, QFII herd behavior will not cause the stock market excessive fluctuations in overall stock prices.Finally, that QFII is the new entry to the top 10 big shareholders of tradable shares of listed companies in 2007's four seasons' earnings announcement is defined a study event in this paper. First, according to each season, this paper chooses listed companies which meet the new QFII holdings of listed companies A-shares in Shanghai and Shenzhen as a sample, and then analyzes four seasons of 2007 as a sample respectively. Whether QFII's investment idea plays a guiding role in China investor's investment behavior is checked empirically by using Event Study Methodology.The introductive effect of QFII Investment on China Investors' Investment Behavior is found.