an analysis of chinese stock market ba<x>sed on a survey on ordinary investors.doc

With the continuous improvement in China's stock market performance an increasing number of individual investors are playing the Chinese stock market. Due to the rapid growth of stock market participants the investment behavior and attitude of Chinese individuals are drawing more attention from Chinese scholars. The research work we conducted can be divided to three parts:
PART1 The survey results show that: 1. Compared with saving and consumption more investors tend to invest in stocks the majority (60.7%)of shareholders think that there will be more shareholders emerged. 2. After the state increased stamp duty investors’ response was generally strong The majority (68.4%) immediately sold the shares they own. the stockholders are quite optimistic of China's economic situation an average of 52.5% of the votes hold that China's economic situation is good and will be better and better. 3. Only 22.1% of shareholders are under the impression that the listed companies in China have bad reputation. While most people think that the credibility of listed companies is good or not bad. they are still very confident with Chinese stock market. 4. Most investors’ awareness of risk is weak They go with the pandemic in stocking. The main source of information and strategy are acquired from newspapers and television.
PART 2 this research uses metric models and regression analysis to analyze the factors that influence investment decisions by individual Chinese. We find that an individual's wealth real estate holdings age gender and marital status all affect stock market investments. also offer advice for policy makers in China on how they can make the stock market more accessible to Chinese citizens.
PART 3 This study identifies and characterizes segments of individual investors based on their shared investing attitudes and behavior. A behavioral finance literature review reveals five main constructs that drive investor behavior: investment horizon confidence control risk attitude and personalization of loss. Ninety individual investors were surveyed via questionnaire on these constructs. A cluster segmentation analysis identified four main segments of individual investors :1) risk-intolerant traders; 2)confident traders; 3) loss-averse young traders; and 4)conservative long-term investors .Each segment purchased different types of stocks used different information sources and had different levels of trading behavior.

Keywords: Chinese stock market; survey; ordinary investors; behavior; risk; macroeconomic information