Analysis of the Behavior of Fund Investment in China on the Basis of LSV Herding Measure

This paper employs the simplified LSV to study the fund investment in China. It has found that, firstly, there are obvious herd behaviors in fund investment in China, secondly, it is not asymmetric when buying stocks and selling stocks, usually the buyer\´s herd behavior is more significant than the seller\´s, thirdly, the fund manager mainly predicts his peers\´ investment decisions in light of the dynamic data in market transactions, and infers new private information from his peers\´ decisions, fourthly, during the period of rapid adjustment in the market, the "consensus" of fund managers is a crucial factor generating the seller\´s herd behavior.