Overconfidence Behavioral Research On Stock Market Investor Of China

China's stock markets as a typical immature emerging in the market, compare with the foreign mature stock market both in building background, operation methods and development aspects has its own characteristics. China's economic development with departure from the stock market rises and falls phenomena and high rate of exchange hand against the phenomenon also serious traditional economics theory of effective market. Therefore, this article attempts from behavioral finance point in China stock market investors overconfidence behaviors and related influence for research.Based on previous related on the basis of research achievements of overconfidence, first for individual investment behavior and the influence of the theoretical overview, then investors in China stock market from investors, the structure characteristics and investment behavior features two aspects of system analysis and generalization, that China the stock market investors overconfidence behavior of the existing conclusions. Then from personal investment behavior and the stock market in two aspects of overconfidence investment behavior model analysis, through model reveals investors overconfidence cause investors invest too much money and tend to trade frequently, make the stock market price volatility conclusion. Then this paper takes the Chinese stock market in 2005 November to December 2010 for the relevant data during sample to change hands rate as investors overconfidence, using the measure index of the econometrics model for empirical research. Finally empirical and theory research results further proof:China stock market investors overconfidence effect, existing overconfidence effect cause current change hands rate rose. And according to above research offers two Suggestions:(1) a large number of cultivating organization investors, reduce investors irrational degree, enhancing market efficiency. (2) strengthen education, advocate for individual investors the right values and investment idea, make investors for their irrational behavior have must know, controlling their own overconfidence degree, reduce the market speculation.