Institutional And Individual Investors Trading Behavior

For a long time," retailization" is the main feature of the investor structure in Chinese securities market.Institutional investors are often considered as rational investors because of their superiorities in professionalization,capital strength and investment scale,while retail investors are accused of being "the chief criminal" who could affect the stability of the securities market in China.Although the rapid development of institutional investors can achieve the goals such as improving the investor structure and broadening the funding sources to some extent,however,in recent years,it is often seen that the phenomenon of institutional investors manipulate the market and conduct insider trading.And the development of institutional investors is unable to effectively inhibit the abnormal wave in the market.In addition,most of the relevant studies show that institutional investors represented by funds tend to take the positive feedback strategy by chasing the winner but cutting the loser,while makes the proposition that institutional investors can stabilize the market in doubt.Through the wind database,the wind database is used to collect the trading data of the stock shares and the individual investors of a brokerage.In the time series,the BW model is used to examine the feedback strategies of investment funds,securities firms,social security funds,QFII and insurance and other institutional investors,and to test the feedback strategies of large,neutral and small individual investors classified according to the scale of funds.And explore the heterogeneity of feedback tendency between institutional investors and individual investors.The results indicate that Chinese institutional investors often adopt positive feedback strategies in stock market as a whole;but there exists differences between different types of institutional investors and individual investors with different levels of wealth in the sample period.The positive feedback behavior of public funds is the most significant,which represents the overall behavior characteristics of institutional investors.And social security funds,QFII,brokerages and insurance companies have no obvious trading behavior characteristics except for a certain period.Besides,individual investors(except for the "big households")employ the negative feedback strategy as a whole,and only use the same positive feedback strategy as institutional investors for certain years.