A Research On The Influence Of Investment Behaviors Of Chinese Public Fund To The Volatility Of Chinese Stock Market

China's public fund industry has been developing for more than 20 years.With the development of the securities market,the fund industry has grown rapidly,its scale has been expanding,and its influence on the stock market has become more and more important.It has become the most important institutional investor in the market.But at the same time there are also negative effects that can easily cause stock market volatility and affect market stability.There is a certain deviation between its actual market operation and expectations,and it is worthwhile for us to rethink the impact of the fund on stock market volatility.Based on the theoretical basis of effective market theory,behavioral finance and other financial investment theories,this paper studies the impact of public fund investment behavior on the stock market in China,using a combination of theoretical analysis and empirical research.Firstly,it expounds the relevant theoretical basis of fund investment behavior,traditional finance and behavioral finance;secondly,it analyzes the impact of securities investment funds on stock market volatility.It mainly introduces the theory of stock market volatility based on herd behavior and feedback trading strategy,and analyzes its impact on stock market volatility.Then,using GARCH model,Granger causality test and other measurement tools to empirically study the impact of fund investment behavior on stock market volatility.Taking the CSI 300 index yield as the stock market representative index,the fund's net asset value and turnover ratio are used as indicators of the scale and operational style of the fund's investment behavior.The research results show that the investment behavior of public funds in China has no significant influence on the volatility of the CSI 300 index yield.The public fund does not play the role of stabilizing the market and stabilizing the stock market.However,there is a stable equilibrium relationship between the three.The increase in the turnover rate of public funds will lead to an increase in the yield of the Shanghai and CSI 300 index yield,which has the function of value discovery,but the fund's net assets do not have this function;on the contrary,the CSI 300 index yield have a certain impact on the fund's net asset value and turnover rate,and have a certain positive impact on the fund's investment behavior.Finally,the paper combines the results,from strengthening investor education,improving the securities market environment,improving the quality of listed companies,and establishing a reasonable fund evaluation system,it proposes relevant inspirations and policy recommendations to the regulators,and makes self-evaluation and prospects for the papers.