The Formation of an Inefficient Market: Analysis of China's securities market.

In the traditional MM regime, the security market is efficient and the investors are rational and always try to maximize utility. However, the cognitive psychology suggests that human decision processes are subject to some cognitive illusion . Given birth in 1980s', China's security market is one of the most unpredictable, controversial, fluctuated, and less regulated stock market, cognitive factors carry a lot weight in explaining this immature, mysterious, and attractive security market. This paper studies how …

…rather than keep pushing out useless "good" news. It should make clear and precise diagnoses to all stakeholders rather than fleeing away from the responsibility it's supposed to shoulder. It should make for the overall reformation a feasible plan with definite yet reasonable time period. Above all, it should consummate existing laws and pass new ones if needed to protect the best interest of the real investors. Other than these, we can't find better ways.