Chinese Stock Market Small Cap Investment Strategy And Management

Along with the gradual standardization in security market and the rapid development of the security investment fund, the original investment thought has underwent great change, and the diversification trend in the aspects of investment style, principle and strategy is coming into being. Meanwhile, investors are continuously seeking for some new investment strategies to adapt themselves to the development of security market too.This paper, based itself on brief presentation on investors' main cognition and behavioral bias, puts forward the behavioral investment strategy and its types, and discusses the principle of small company stock investment strategy, analyzes characteristics of small company stock investment strategy, which is compared with traditional value investment strategy. On the foundation of analyzing the efficiency of Chinese security market and the behavior characteristics of Chinese investors, this paper discusses the applicability of the theory of small company stock investment strategy in China. This massage, combinning whit the current conditions of Chinese security market, exerts the means of sections to estimate multi-factors model, researches the strategy of electing small company stock after the datas of Chinese market has analyzed, it has reached a conclusion that the profit of investment could be further enhanced if the investors elect their stock with double-factors means. This paper, which is comparing with the process management of traditional investment and combinning with thebehavioral financial theory, brings forward the behavioral investment management; contraposes the characteristics of the small company stock oneself, discusses the specific practice and exertion of small company stock strategy in investment process management. This paper, directs investors, in general, the way to exert the theory of small company stock strategy in investment process management effectively, and emphasizes on the influence, caused by investor's emotion, on the stock price and the importance of investment decision made by mental control.