Research On China 's Financial Supervision System Based On Behavioral Finance Theory

After the financial crisis, every country has to reflect the traditional model of financial supervision. With the development of behavioral finance theory, various regulatory authorities are aware of the influence because of the individual psychological and behavioral factors, so when making the policy, the regulatory authorities have to absorb the concept of behavioral finance. Because of economic globalization and the rapid development of the financial sector, our traditional financial supervision model presented a huge challenge, so we should change the existing regulatory model. Based on the behavioral finance theory, I mainly analyze the necessity and goals of the behavior financial regulation. At the same time, I contrast behavior financial regulation with the traditional regulatory model including functional supervision model, institutional supervision model and target supervision model, trying to figure out their strengths and weaknesses. Consumer protection is a recognized goal of the behavior financial supervision, many countries have been established kinds of regulatory approach in according to their national conditions. In the thesis, I illustrate the international situation in terms of the legal framework, financial education and on, cite the experience in the United Kingdom, the United States, Japan and Hong Kong. In China, behavioral finance concept has permeated in many aspects, for example, executive pay and GEM’s investor supervision. Although China has established consumer protection sections, in order to optimize our existing financial regulatory model, we should analyze the facing challenge, and then prescribe the right medicine, give the reasonable suggestions. The study can improve the effectiveness of financial supervision.