Financial literacy has become an important competency for university students as young adults increasingly participate in financial activities. In Chinese higher education

financial literacy education has gradually expanded from theoretical knowledge acquisition toward practice-oriented competency development. Stock market trading simulations have been widely introduced as a practical teaching approach; however

their educational value remains debated. While experiential learning theory suggests that simulated investment activities may promote knowledge application and decision-making ability

behavioural finance theory indicates that virtual trading environments may also encourage speculative tendencies due to the absence of real financial consequences.This study investigates whether stock market trading simulations promote rational investment education or reinforce speculative behaviour among university students.

Based on a quasi-experimental design conducted in a Chinese university

this study collected 506 valid questionnaires from students participating in a stock market trading competition and students receiving conventional instruction. Independent-samples

t

-tests and Ordinary Least Squares (OLS) regression analysis were employed to examine differences in financial literacy outcomes between groups.The results indicate that students participating in stock market trading simulations demonstrated stronger financial knowledge

analytical ability

rational investment attitudes

and risk management awareness. These relationships remained significant after controlling for demographic characteristics. The findings suggest that appropriately designed stock market trading simulations can function as effective experiential financial education tools by connecting theoretical learning with practical decision-making.This study provides empirical evidence for integrating simulation-based activities into higher education financial literacy education and highlights the importance of combining practical experience with reflection and educational guidance.