Interacting of stock traders and empirical analysis on the stock market of China

Crash of capital market in the past showed that capital market isn´t always rational and efficient. The investment attitude of traders and investment environment are main factors influencing on stock prices. Empirical analysis on capital market of China indicates that consistency of the interacting model between theory and practice is rather well, and discovers that the investment attitude of traders has more significant effect on stock prices than intrinsic value of stock. Thus, speculation in the capital market is very strong. Improvement of quality and behavior of listed companies is a basic condition changing the situation.