Study on Investors' Structure and Feature of China's Securities Market

Abstract

With the sustainable development of China's economy, China's securities market would play more and more important role in the global securities market. However, as an emerging market, the speculative psychology and short-term investing behavior in China's securities market is very obvious, therefore, it is of important theoretical and practical significance to research on behavioral finance features of China's securities market. Firstly, the paper introduced the basic characteristics of China's securities market and illuminated the development background of behavioral finance in China; secondly, analyzed the structure and educational level of investors; finally, explained the difference of the investing behaviors between information trader and noise trader. Based on the analysis, the paper draw a conclusion that the frequent noise trading and sudden and sharp volatility of stock price of China's securities market was closely related with the perfect degree of market system and the investors, thus, the paper put forward some policy suggestions from the two aspects of macrocosmic supervision of government departments and improvement of investors' educational level.