Investor’s anticipation and future market movement: Evidence of self-fulfilling prophecy effect from Chinese stock market

Abstract

We analyzed data collected from retail investors in Chinese stock market from a fin-tech mobile platform to find evidence of self-fulfilling prophecy effect. We found statistically significant correlation between the predicted and actual Shanghai Stock Exchange Composite Index (SSECI) as well as nonrandom deviation patterns. We also analyzed participating investor behaviors and discussed the implications and future research.