Abstract—With the increase of individual investors in China,
some phenomena in the stock market have also received
widespread attention, such as IPO underpricing. Some scholars
believe that the main reason for the recent stock underpricing
in China's capital market is the irrational trading behavior of
second-level market investors. To explore the causes of this
new phenomena from the perspectives of individual investors,
this paper analyzes information collected through
questionnaires from individual investors to explore the cause of
this recent underpricing phenomena. This research indicates
that overconfidence, representativeness and herding are the
causes of irrational emotions and causes of irrational emotions
which lead investors to pursue new shares in the secondary
market.
Index Terms—Behavior finance, secondary market,
individual investors, irrational emotions.
The author is with Accounting Department, Xian Jiao Tong-Liverpool
University, Jiangsu, Suzhou, 111Ren Ai road
Cite: Yiyan Jin, "Exploring the Irrational Sentiment of Individual Investors in China's Secondary Stock Market," International Journal of Trade, Economics and Finance vol.13, no.6, pp. 183-186, 2022.
Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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