Research On New Materials Industry Investment Opportunities

This paper discusses the investment opportunities of new materials industry by the stand of the direct investor, and four small fields which are chemical new materials, electronic information materials, new types of metal materials and Eco-energy materials are divided. The key is to solve the problem of 'what to invest' and 'when to invest' in four small fields.As to 'what to invest', the paper analyzes industrial policy guide of the government, the development potentiality of the trade, competition state of the trade and the lifecycle of the trade. It identifies with relatively larger investment opportunities in the field of new materials through the aspects of the degree of market concentration, access barriers, products differentiation, and technical level of product and market prospect.As to 'when to invest', the theory of option games is used to solve the problem. Option-game model primely balances the factors of investment under uncertainty and competition. This paper summarizes the four stages in mutual competitors and generalizes the duopoly option-game model to asymmetric more oligopolistic monopoly option-game model. There are more than two competitors of which the presumed number is n mutual gaming in sequence equilibrium. Each investor can find its own optimal timing of investment. Moreover, it presumes the cost of each investor is not the same. The calculation process is shown by the case.