Policy Depends On The Investment Behavior Of Institutional Investors

The growth and development of China's stock market is inseparable from the government to guide and promote, but in the twenty years of the development of China's stock market, the government tend to affect the operation of the stock market and volatility by various policies and measures in order to achieve their own policy control goals, which also led to China's stock market-specific "policy market" phenomenon, especially during the stock market crash, trading volume dropped, extreme lack of market sentiment, the market will always hope the introduction of good national policies to promote the stock market rise; the opposite way the stock market rose bubble bigger, the state promulgated a series of policies will be to suppress or control. Over time, China's stock market forms a strange phenomenon: which is increasingly dependent on policy. As an important force in the stock market, the policy depends also on the investment behavior of large institutional investors have depends also on the investment behavior of large institutional investors have had a great impact, direct impact on institutional investors, investment approach and trading behavior. While institutional investors will also use their own advantages, in turn, "forcing" policies introduced by the Government in order to obtain excess returns. Dependent on the existence of the phenomenon due to policy, the stock market "economic barometer," the basic function failed to give full play to China's market, which not only weakened the stock market's information transmission and resource allocation function, and a serious blow to the value of the investment, investors are not conducive to proper investment concept formation, but also contributed to the stock market rises and falls, adding to speculation in the stock market, in particular, caused the majority of individual investors, institutional investors and other status information that does not directly harm the interests of the majority of individual investors, not conducive to the long-term healthy development of China's stock market. At the same time, the policy also restricts the dependence of China's economic reform process. Therefore, the study rely on China's stock market policy, especially on policy depends on the investment behavior of institutional investors, not only of theoretical significance, and of great practical significance.In this paper, the policy must rely on the Chinese stock market is based on in-depth analysis of China's stock market policy depends on internal and external causes, and through empirical research proved that institutional investors will make use of relevant policies promulgated by the state to further stifling or move up the stock market, and use their hands huge information resources, to respond in advance to grab the hands of individual investors from the majority of excess profits, the objective is not conducive to the health of the stock market's healthy development. On this basis, the article also made dependent on the correction of the relevant policy recommendations to promote China's stock market continues getting better.