Study Of China’s Four Big Industry Stock Price Decision Model

Since The Shanghai and Shenzhen stock exchange were founded,Chinese securitiesmarket has got fast development.A common problem for people who participate insecurities trading and scholars of securities is changes in stock price.It is determined orinfluenced by what factors,how these factors affect stock price,in these factors,which onesplay the main or even decision role.These problems has discussed in different point ofviews in the past studies.But there is a common cognition that information on thefluctuation of stock prices is significant.We can often see that in the stock market shares ofan industry’s rising and falling at the same time.This can tell there are some factors of theindustry affect the stock price.First, this paper introduces the related theory, the EMH and stock pricinganalysis,and comparing of existing stock pricing model. Combined with the actualsituation in our country, finally chooses multiple linear regression model to do the studySecondly introduce data source and model build and test.Select F10information fromJanuary2th2011to April27th2012, select the six indicators for the data base, after theraw data for processing, sorting is analyzed. Indicating the model test and the selection ofthe optimal model..Then, for four industry according to the stock price of mode of analysis, combinedwith industry characteristics to industry differences after comparative analysis, resultsshow that banking stocks prices is mainly affected by the net assets and undivided profits;Iron and steel industry is more affected by future earnings forecast;Coal industry alsoaffected by the shareholder structure as well as future earning forecast; Wine ang foodindustry is greatly influenced by the stock returns,including present and expected.Finally,give some suggestions based on the results of the study on the stock marketparticipants, and proposes the outlook for the deficiency of this article.