Research On Performance Of Institutional And Individual Investors Relying Cash Flow

As we all know,it is short for the booming period of capital market,and it is only twenty-five years for the emergence of stock market.compared to the western capital markets,China's stock market has much flawed and incomplete whether the systems or the management.China's stock market has been staying development and improvement.Along with the stock market environment of the Chinese characteristics,the volatility of the stock market far exceeds the Western countries,so many foreign theories can't apply for the China's capital market.As the two major investors on the stock market,what is the investment strategy and relationship between them,what is the final level of performance for their investment strategies.Which is the type of investor determines the trend of the stock market ? Will the results keep the consisitent on the different stages.These will become the focus of what we should study.This paper is based on the theory of efficient market hypothesis,Herd Effect and investment strategies theory,supported for correlation analysis and regression models constructed,and taked the Shanghai Composite Index and the capital flows as the sample.Through theoretical analysis and empirical,it proved that it is different to promote its development of our stock market in different situations,and the respective performance levels of its investors is different.In the bullmarket conditions,the individual investors are the main driver of rising stock price index and institutional investors mainly cash-based earnings.The investment performance of retail investors is higher than the investment performance of institutional investors in the short term.On the relatively stable conditions,capital flows keep balanced between the institutional investors and individual investors,and they have basically similiar views for the market outlook.under the such circumstances,there is no significant performance differences between them.In the bear market conditions,institutional investors are the main driver of falling stock price index,and individual investors always excessive assess the market outlook,and investment performance of institutional investors is higher than the investment performance of individual investors in the short term.According to the researching the impact on the stock price index and the different performance between institutions and individual investors under the different conditions,we will be able to rational investment.As a individual investor,we should be based on the individual market liquidity situation to make their own decisions on a bull market conditions,that is,investors should follows the strategy of individual investors;the market basically remained stable in a steady conditions,we should keep long-term investment relying on fundamental analysis and technical analysis.The strategy of institutional investors alwaysconsistent with the stock market in a bear market conditions,so we should follows the strategy of institutional investors...