Portfolio Evaluation And Comparative Study Of Chinese Listed Banks' Performance

It is well known that the financial industry is the lifeblood of a country's economic development, and the banking industry is the most important part of Chinese financial industry. Among three decades of Reform and Opening up, China's banking industry has undergone tremendous changes and achieved a brilliant success. However, China's banking industry is in planned economy over a long period, and it emphasized size, didn't care about quality, didn't take profits maximizing as the business object which resulted in a series of problems in the course of business, such as poor asset quality and lacking of financial innovation and so on. And China is now still in the initial stage of market economy, the overall competitiveness is not strong enough, development is still lagging behind, especially in the end of transition period of the banking industry's opening up after China's accession to the WTO, foreign banks have gained an unprecedented rapid development under the protection of a series of policies. In the face of rapid developed and strong foreign commercial banks, Chinese commercial banks are undergoing increasing pressure.Under the circumstances, in order to resist the influence of foreign commercial banks and global financial risks to win the competition finally, Chinese commercial banks are urged to seek ways to improve their business performance and enhance their overall competitiveness. The bank's operating performance is the best embodiment of the bank's competitiveness, so through a comparative study of China's listed banks'operating performance to identify the reason for the gap between them and to work out ways to improve business performance will be of great significance to the development of China's banking industry. First of all, it is the necessary requirement of improving China's listed banks'competitiveness and integrating with the world better in the competitive environment. Second, it is the objective basis of measuring the market value of China's listed banks. Finally, it is the necessary means of achieving effective management of China's listed banks.This study contains five parts, the first part introduces research background and significance, research ideas and structure, research methods and innovations. The second part reviews domestic and foreign scholars'relevant studies on the performance of commercial banks. The third part builds an index system of evaluating business performance of Chinese listed banks based on previous studies, according to index system principles of commercial bank performance evaluation. After obtaining the evaluation index system, the fourth part selects relevant data of 14 Chinese listed banks in 2010 as research sample, and conducts a comprehensive evaluation of these 14 listed banks'performance by using fuzzy judgment matrix method, gray relational analysis method and BP neural network method to come out a comprehensive ranking. And this part divides the 14 listed banks into three categories, namely state-owned commercial banks, joint-stock commercial banks and city commercial banks, and studies the inner link between the different types of listed banks and the four areas of business performance (profitability, liquidity, safety, growth). Finally, according to the results of empirical analysis, the fifth part proposes some countermeasures and suggestions to increase Chinese listed banks' performance.Innovations of this paper are:first, this paper uses portfolio evaluation method to conduct empirical research on the performance of Chinese listed banks, so the evaluation results are more scientific. This paper first respectively uses fuzzy judgment matrix method, gray relational analysis method and BP neural network method to get three evaluation rankings. Then, it uses Copeland method to combine the three rankings of three single evaluation methods, so the final result is more scientific and rational. Second, this paper uses correspondence analysis to study the inner link between the three different kinds of Chinese listed banks and the four aspects of business performance, and combines with results of portfolio evaluation method to analyze the final results, so the evaluation results are more comprehensive.The inadequacy of this paper is:it mainly selects four kinds of financial indicators for analysis, but it lacks of soft indicators, such as innovation, business environment, customer service and so on.