Dissertation > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Financial market

Analysis of the Impact of Noise Trading in Chinese Stock Market

Author LuYang
Tutor ZhouLiZuo
School Southwestern University of Finance and Economics
Course Finance
Keywords Noise Trading Bounded Rationality Stock Market
CLC F832.51
Type Master's thesis
Year 2010
Downloads 132
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In the standard finance theory the influences of noise trading to the price can not persist for a long time.Because the noise in the Efficient Market Hypothesis is a random error term with a mean of zero and the stock price will incline to its value as time goes on, then the noise will disappear, at the same time the noise traders will retreat form the stock market in the alternative market mechanisms at last it is the rational traders dominant the stock market. But in resent years both the anomalies instock market and the irrational tests on the investors all confirm that the trading of irrational investor can influence the price in stock market, so the noise theory which use the investor bounded rationality as its hypothesis is introduced into the finance market.On the basis of an overall citation and review the related finance literature, the thesis is a formal investigation on the noise trading in security market in our country.Defined the concept of noise and noise trading and analysis the reason of noise trading on the stock market. At last analysis the the status of noise trading in China’s stock market.

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