Investor Sentiment and Stock Return: Evidence from China

This paper exams the impact of investor sentiment on the stock return in China from 2018 to 2019, and finds investor sentiment and stock returns are positively correlated. Specifically, if investor sentiment rises by one unit, stock return will rise by 0.1%. Further evidence shows that investor sentiment has a greater impact on the return of the stocks with high attention, and stocks in new areas such as 5G. Based on the research results, the paper provides investment suggestions for investors. This paper contributes to providing a new decision-making perspective for investors by finding out the influence of investor sentiment on stock returns.