Research On Price Mechanism Of China's Stock Market Based On Behavioral Finance

Behavioral finance,starting with micro individual behavior and combining psychological and social factors,studies the phenomena and problems in the financial market,especially the problems related to the behavior subject,and tries to find out the different environmental conditions by analyzing the behavior deviations and some abnormal phenomena of the behavior subject.The behavior concept and the characteristics of decision making can further understand and reflect the decision-making behavior of the market behavior subject and the situation of the actual operation of the market.A country's stock market can indirectly reflect the state of the country's economy.It can be said to be a barometer of the macroeconomy and its importance to the economy.Compared with western countries,China's stock market is relatively late,but it is a new capital market with great potential and very broad prospects.The stock market is the most important way of financing.The future development of the stock market is not only directly related to the interests of the investors,but also affects the capital market and even the economic development.China's stock market is not perfect,with a large number of uncontrollable factors,which leads to the existence of various problems in the stock market of our country,there are many unreasonable phenomena,paradoxes also appear frequently.The existence of these problems has brought great trouble to the investment,and at the same time,the investment behavior in the market has brought huge uncertainty,which affects the investment environment of our country.This paper mainly studies the financial theory from the perspective of behavioral finance,and hopes to explore the running rules and running characteristics of the market by studying the irrational behavior of investors and market subjects on the basis of behavioral finance.The main use of game theory,event driven,window period and other research methods to build a market model based on behavioral finance theory,and the practical and practical analysis of the model.Finally,the financial market is mainly the stock market.The first chapter introduces the characteristics and basic situation of the current stock market in China.Secondly,it expounds the background and significance of the research,introduces the development background and current research situation of behavioral finance,and finally expounds the main theories and research models of behavioral finance and some known results at home and abroad,and finally gives out the results.The main results obtained in this paper.In the second chapter,through the study of investors' investment behavior,a dynamic game model is established to study the price formation mechanism under the participation of behavioral investors.Then,the model is used to study the typical event driven factors and explain some financial event driven phenomena.After in-depth analysis and comparison,the model is analyzed and analyzed.The reasonableness of the study.The third chapter,based on prospect theory,uses game theory and idea to solve the problem of price fluctuation in speculation in financial market.Based on the hypothesis of model theory,the game is divided into two stages,and the game model is used to explain the game phenomenon between institutions and individuals in the stock market and gives some suggestions.The fourth chapter,the summary of the research issues,based on the prospect of some trading strategies and recommendations based on the model,combined with the results of this paper to give some reasonable opinions.In this paper,the model based on behavioral finance can effectively explain the mechanism of price abnormal change in the market.It can be seen that behavioral finance is more practical and more powerful than traditional finance theory when solving some complicated and changeable problems.