Find the Better Investor Portrait for the Chinese Stock Market

Abstract

Abstract: Based on the research about the trading behavior of retail/individual investors, institutional/professional investors and foreign investors in in previous literature, we analyze the investment profitability and the information sources of these investors, and study the influence of their trading on the market price formation, liquidity and volatility, to give the systematical function portraits of different types of investors. In addition, by using the summary statistics data from some developed stock markets (the U.S., South Korean, Hong Kong and Taiwan stock markets), we compare the evolution program and the current situation between the Chinese stock market (the stock markets in the mainland of China) and them. Finally, we give three possible directions for future improvement of investor structure portrait:narrowing the ratio of individual/retail investors, supporting the development of institutional investors and extending the channels for foreign investors, to provide some reference suggestions for the healthy and stable development of the Chinese stock market.

Key words: function portrait, structure portrait, individual investor, institutional investor, foreign investor

Gao Ya, Xiong Xiong, Ma Junjun. Find the Better Investor Portrait for the Chinese Stock Market[J]. Management Review, 2020, 32(10): 47-58.

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