A Study On Investor Sentiment Of Chinese Financial Market

In stock market,investor sentiment can be regarded as the indicator reflecting the market-heat.This paper studies the relationship betweeninvestor sentiment and market-heat,which is represented by the debt balance growth and the closed-end fund discount rate.The results show that the debt balance growth and the closed-end fund discount rate can reflect individual investor sentiment and institutional investor sentimentrespectively. Furthermore, investor sentiment notably influences market return,and it is useful to forecast the market return in the future.