Hangzhou Individual Investors To Invest In Securities Research Psychology And Behavior Deviation

The securities market is the center of resource allocation under the condition of market economy, and it is a symbol of extreme prosperity of market economy. As providers of capital and important participants in the market, whether individual investors can participate in the securities investment activities rationally, affects the development of the securities market directly. Therefore, research about the behavior of investors in securities market never stopped since1950s. When entering the21st century, the research of behavioral finance have become an international hotspot research topic. Nowadays, more and more scholars of economic and financial psychology and sociology turn to study the behavioral finance theory. Meanwhile, some financial securities industry practitioners begin to use behavioral finance theory to guide their investment strategies.The development of China’s securities market has only a short span of20years, and it is still an emerging market, so it still has a lag behind in the construction of market system when comparing with European and American countries, which have hundreds of years of experience. At the same time, investors in China’s securities market has not shown their corresponding maturity with the market development speed that their investment philosophy, investment psychology and investment style is not mature enough. The investment risk awareness of Chinese investors is still very weak, and differentl kinds of speculation exist in the Chinese market, all of these lead to damage to medium and small investors’economic interests. Under such circumstance, the study of investor behavior is of great significance.The thesis can be divided into four parts as follow:Chapter one is introductory. This chapter introduces the background information, significance as well as the selection of object and thoughts. Research methods and chapters arrangements also have be described in detail.Chapter two describes the theoretical basis of individual investors’behavior in securities market. Firstly, it introduces the behavioral finance theory on the basis of a review of the traditional financial theory, which includes its background, development process and important points, theories and models which have been put forward so far. Secondly, it shows the generation of behavioral finance and some related theories, including the background and development paths. Finally, it summarizes investors’ cognitive bias throughout the investment decision-making process and individual psychology and behavioural biases in the financial markets.In chapter three, the thesis adopts the method of questionnaire survey and in-depth visit that makes a survey and analysis of the individual investors in securities exchange department in Hangzhou. It inspects different psychology and behavioural biases in the decision-making process.Chapter four is enlightenment and suggestions. The thesis put forward somg resonable investment strategies from the angle of integrating theory and practice, and it raises appropriate action proposals for individual investors.By questionnaire survey and visiting research to the individual investors in securities exchange department in Hangzhou, I try to verify that whether the investment behavior of individual investors in this region has fully complied with the study of behavioral finance and then explain and study the result.