The Analysis Of Not Perfect Institution And Investment Behavior Of Securities

China securities market is an emerging market, the produce, development of the securities market is different from mature securities market, it has a unique historical background, our securities market is not in the system of our country credit and enterprise share-holding system foundation, but it is promoted by the government in order to achieve the planned economy change to the market economy, from the start with a strong color of government. The security market of our country individual investors are many, but the perception of market is not mature, although in recent years the number of institutional investors has increased, but the development is not full, the investor has not yet formed a relatively mature investment style. Through the research and analysis of China securities investor behavior, we can find existing problem, help investors understand the behavior deviation, rational investment is very important.This article analysis on China’s securities market from the behavioral finance perspective, from the behavioral finance theory, draw lessons from the research results at home and abroad, through to our country investors’limited rational analysis, institutional factors into behavioral finance research, analysis of system factors on investment behavior, found in China’s securities market is not perfect market system, investors affected by the institution, in the decision-making process, there is existence of cognitive bias, cognitive bias makes investment existence of overconfidence, herd behavior, positive feedback behavior.Firstly, analysis on the nature of investors in securities market, obtain that the investor is limited rational, they have a variety of cognitive bias in the investment decision-making process. Then point out that the system is as a constraint on securities market investor’s behavior condition, mainly including the securities market structure and transaction rules, as well as macroeconomic policy, there is no clear or stable implementation of the system, policy behavior of the government instead of institution, leading to the securities market investors are overconfident, noise trading and other irrational behavior. Secondly this paper analysis on the non-rational behavior of investors, through to the Shanghai stock market trading volume and stock index returns as Grainger Granger causality test, found in the stock market, stock returns has a relationship of the stock trading volume; through the positive feedback trading model to investors in China analyzes the behavior, securities investors exists a positive feedback traders, they are a special class of noise traders, not based on effective information, but rather depends on the level of income. Finally this article in view of our country securities investor behavior deviation, offer a proposal to investors, securities market regulators and government.