The above research points out that herd behavior in financial markets may be caused by human herd instinct, interpersonal infection, demand for reputation and salary, uncertainty of information and high cost of information. These theories provide strong evidence for people to master and control herd behavior in financial markets, and are of positive significance to the standardization of China's securities market and the establishment of investors' rational investment concept.

For investors, because herding behavior is associated with conformity and lack of innovative ideas, people who participate in herding behavior generally hold a break-even attitude, and they can only get a rate of return that does not exceed the market average at most. Therefore, for investors, if they want to get a higher-than-average rate of return, they must maintain the spirit of independent innovation in the pattern of "conformity" (such as market ups and downs). To maintain independence and innovation, we need to fully understand the assets invested, don't believe hearsay, keep a clear head and fully consider various potential risks in the extremely unstable market and uncertain information. From the perspective of regulatory authorities, herding behavior has a negative effect on market stability, and herding behavior in the whole market will also lead to deep-seated financial turmoil. Therefore, to reduce this irrational behavior, we should start from the following aspects:

1. Cultivate investors' rational investment ideas and carry out rational investment education;

2. Standardize the information disclosure system, increase information transparency and reduce information uncertainty;

3. Reduce all kinds of information costs, transaction costs and organizational restrictions;

4. Modify the salary structure of senior managers, and measure various abilities when measuring performance, such as considering innovation, setting the lower limit of salary level, setting additional rewards for winners, etc. This method will be very effective for conformity behavior based on reputation. At present, China's securities investment funds have a single reward standard for fund managers, which leads to the convergence of investment styles of various funds, making most funds adopt growth investment strategies when the market rises, and balanced investment strategies have no place in the market. If the market reverses, investment funds with the same strategy will fall into great risks. If the salary structure is properly modified, it will encourage the diversification of fund investment style and reduce the overall risk of the fund.