Behavioral Finance "Stock Market Wealth Effect" Theory and the Buildingof Stock Market Stability Mechanism

From the behavioral finance market wealth theory to improve thatit is important tu China’s stock market to build a China’s stock stable mechanism to guide small and medium investors to invest rational behavior.The Government need set up early warning system and simple risk control model for small and medium-sized investors to rational invest.This will promote China’s securities market to keep prosperity and stability and to reduce negative wealth effect impact on the national economy.