Application And Strategy Research On Value Investment Implemented In Chinese A-share Market

Compared with developed countries in Europe and the United States, Chinese stockmarket is gradually shifted from the embryonic stage to rapid growth, the transformation ofthe investment philosophy is an important symbol of that, investors are from ignorant to therational in the stock market investment. In the today’s world, there are five main investmentpatterns which are dominant: value investments, growth investments, index investments,technology investments, portfolio investment, through a number of empirical research, it’sproved the value investment can obtain excess earnings in most cases.The first part, starting from the current situation of globe stock market,comparing withtheir extent of study,we find that its be short of value investment in domestic.So,thischapter will mention background of research,purpose of research,method of research. hispaper points out that the value investment is an enduring strategy in the global stock market,because it enables investors to obtain excess earnings.The second part, starting from the origin of value investment, introduces its relatedconcepts as well as the theoretical basis, and describes in detail for the basic method ofabsolute valuation and relative valuation, which prepares well for below empiricalsection.Then this part describes the evolution of the Chinese A-share investmentenvironment and investment strategy, points out that the value investment strategy hasbecome a mainstream one after the end of the Chinese Village era；also points out thatChinese stock market has been ready with the internal and external conditions forimplementing the value investment strategy. The value investment return is inevitable andfeasible in Chinese stock market.The third part, we settle transaction data about quoted company in domestic stockmarket.Starting from demonstration analyse about some index like B/M orP/E.We foundthat they have a relation with income of stock.Though analyse about these index,valueinvestment is rather applicable of long time investment.But, short-term yield is well in bullmarket.In all,for obtaining steady income,we should hold long-time stock which has wellprofitbility. The fourth part,we analysis all sorts of period in civil economic.There is greatnessinfluence for civil economic. Therefore,it is important that choicing seemly industry in civilstock market. in addition,we found that low P/E and P/B is appeared bottom market,it is agood time to set up one’s holding.The fifth part,through analysis of economics surroundings,industry profitbality,andfinancial index,we use the non-ferrous metals industry as background, according to theeconomic cycle, selects the gold industry for analyzing, which is having most investmentvalue，and choose Shandong Gold with the most investment value in industry sector, provedthis method is feasible in the stock market investment strategy.The final chapter summarizes the empirical analysis of the above chapters, concludesthat value investment in A-share market is feasible, and sums up the innovative methodsuitable for the A-share market investment through the theory and practice method atdomestic and abroad, then the right approach is raised for the further research with stockmarket by the institutions and the general market investors.