Empirical Studies Of The Psychological Barrier Of China's Securities Market Stock Index

The interaction of a country's economy with its financial market has become more and more conspicuous. The stock market, labeled as the national economic barometer, with the proportion of its market capitalization in GDP increased significantly, exerts a stronger influence on financial markets, people's daily life and national economic activity. Besides, the stock price index, which is average of relatives, can report general change at price level. In recent years, with the rapid economic development, it is meaningful to research on stock index.It is not a rare phenomenon that Media and securities analysts, in most cases, give special meaning to certain numbers when making comments on different types of stock index. Some special Numbers, more often than not, are determined by the absolute number of stock index, the significance and effectiveness of which require further studying. These special numbers, the so-called "psychological level", play an important role in investors'decision-making, consequently triggering the abnormal phenomenon related to them.This article, setting Shanghai composite index and shenzhen composition composite index as examples, research on "psychological level" of the securities market psychology in china. The empirical test, mainly adopting modeling, statistic test, remodeling, results explanation etc., analyses the following two points:whether these Chinese stock market investors are affected by "psychological level"; to what extent the stock index returns have been influenced by "psychological level".