Research on the Correlation between Equity Premium, Investors’ Disappointment and Disgust Psychology

As China continues to develop, the A-share market will also encounter certain problems during its development process. This study focuses on the phenomenon of equity premium in the Chinese A-share market, and explores in depth the correlation between high equity premium and the psychological characteristics of Chimarket andors’ disappointment and disgust. Based on the theory of “disappointment aversion” in behavioral finance, combined with two typical events of the 2020 pandemic and the 2025 US equivalent tariffs on China, this study also utilized market-related data and calculated indicators such as turnover rate and equity premium rate for comparative analysis. Research has found that investors’ “disappointment and disgust” psychology has a significant impact on investment decisions during market fluctuations, and is closely related to the equity premium in the A-share market. This conclusion helps to understand the operational mechanism of China’s A-share market and provides a theoretical basis for investor decision-making and market regulation.