| Modern financial theory of investment is based on the capital asset pricing model(CAPM)and the efficient market hypothesis(EMH)two cornerstones.The classical theory of economics to undertake the analysis,the model and paradigm limitations in "rational"framework,ignoring the analysis of the actual decision-making behavior of investors.As the financial crisis in recent years,as well as countries compete to carry out quantitative easing lead to capital market volatility,so that the model and the actual departure from rational analysis paradigm of modern finance theory into an awkward position.On this basis,behavioral finance theory in the 1980s sprung up,and began to shake the authority of the status of CAPM and EMH.Behavioral finance theory to human psychology research as the basis for people’s actual decision-making as a starting point for a discussion of psychological affect investment decisions of investors to the market price.It focuses on the diversity of investor decision-making psychology,breaking the modern financial theory to focus only on the optimal decision-making model that rational investment decision model is to determine the changes in the market price of the stock is assumed that the actual investment decision model,so that people in financial markets investor behavior Research by the "how should make decisions" to "what is actually making decisions," the researchers closer to reality.In the 1990s the theory research is sprung produce and further mature.Currently on the A-share market investors in terms of structure,the number of individual investors account for most,according to the latest Chinese settlement statistics show that as of December 31,2015,amounted to 99.1 million the number of individual investors,accounting 99%of the total number of investors,institutional investors,the number of 28.38 million,accounting for only 0.28%of the total number of investors,that the vast majority of the total number of individual investors are still investors.So its inherent psychological and behavioral biases,and thus in the investment process exhibits irrational behavior directly reflects China’s A share market phenomenon peculiar to investment and investment behavior.Behavioral Finance with respect to the traditional financial theory undoubtedly has a greater degree of theoretical guidance application on a typical emerging and transitional capital market.Hopes of behavioral finance theory makes the stock market more effective application of healthy and stable development of China,has great theoretical and practical significance for guiding the investment behavior of investors.This paper first systematically expounded the theory of behavioral finance,and then use the theory of behavioral finance to explain and analysis of China’s A share market investment behavior and investment behavior,found that Chinese individual investors in securities investment behavior in the presence of many psychological and behavioral problems such as:"overconfidence," "loss aversion","mental accounts ","hindsight" and pointed out that investors are likely to exist in the investment decision-making process in a variety of psychological and behavioral biases to some extent contributed to the existing investment patterns and investment behavior;then statistics and securities companies "individual investors behavior factors" on the basis of results of the questionnaire,and make quantitative and qualitative analysis.This paper also through the study of Chinese investors individual investors the A-share market’s behavior indicated its current A-share investment model and investment philosophy as investment trends,the value of investment,technology investments impact.Finally,from the development and improvement of market regulation proposed share issue registration system,improve the information disclosure system,suggest improvements and recommend individual investor education and strict management,and institutional investors. |
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