Study in Chinese Individual Investors Through Behavioral Finance

Abstract

Due to rapid growth and development in China's economy, there is also a dramatic growth in China’s financial market. With that, the market has been attracting people to get into the market and investment, even though a lot of them do not have any knowledge or experience about investment. The entering of those investors not just brings more opportunity to the market but also increases uncertainty to the market due to their irrational behavior. With the purpose of providing insight into China's market, this paper will study the irrational behavior of Chinese investors and psychological biases that affect them based on behavioral finance.