Herding Behavior Of China's Stock Market Personal Investment Research

Herd behavior is a special behavior in money market, which is no sense in falling under other's information and imitating other's decision-making when investor was encircled with uncertain information. It represent in stock market was the same buy or sell action. For herd behavior concerned with multi-investors in relation activity, it impacted stable and efficiency of the market, and also had relations with finance crisis. Therefore the study on herd behavior not only provide powerful evidence to control it, but also make for establishing the criterion in Chinese Stock Market and rational investment among the investors.This essay is a systematic and comprehensive analysis of the sources, categories and demonstrations of the Herd behavior. Moreover the analysis is supported by firsthand statistical findings from put options of Wu Liang Ye exchangers and takes on the investors' point of view. The essay testifies to the existence of Herd behavior in Chinese stock market, according asset, sex and the times in stock market,which supplies the research on such topic in a broader business setting. Finally, in response to the Herd behavior, based on behavioral theory of the proposed investment strategy.