China's Warrants Dealer Behavior Research

Traditional finance based on the assumption of rational behavior,but there are many phenomena that are not explained by the traditional finance.Combining economics with psychology,behavioral finance theory studies the influence of psychological factors and behavior deviation to stock transaction on the uncertain environment.The financial markets in china are undeveloped;the warrants market is on primary stage, which is affected on the psychology and behavior more than that developed market.The paper is based on the behavioral finance theory to explain the action of investors with the characteristics of Chinese warrants market.Firstly we analyze the status characteristics of Chinese warrants market,and then introduce many "anomalies" through contrast behavioral finance theory to traditional financial theory.This phenomenon is not explained with traditional financial theory but can illustrate in detail with behavioral finance theory.At last,the paper derives some meaningful conclusions that refer to investors and authorities.