RETRACTED: Herding Behavior in China's Stock Market under the Background of Implementation of the SHKSC Policy (Retracted Article)

In the financial market, because of information asymmetry, investors often ignore private information. Herding behavior in financial markets has become an important research branch of behavioral finance. China stock market has implemented the Shanghai-Hong Kong Stock Connect (SHKSC) policy and introduced mature funds, however, has it alleviated the herd effect? This article empirically verifies the existence of China's stock market before and after the implementation of the SHKSC policy. The research in this article found that the implementation of the SHKSC policy has not changed herding behavior. On the contrary, the herding effect has become more serious. It is further found that investors have no obvious investment preference for the industry to which the stock belongs. Investor investment is in line with the phenomenon of "slow rise and sharp fall." When stock prices fall, the herd effect of the Chinese stock market is also more obvious.