Research On The Application Of Value Investment Method In China 's Securities Market

Since1990the establishment of Chinese capital market, many investorshave been researching the operation rules of wealth about stock market, avariety of investment theories were researched and used by vast numbers ofinvestors in the market, with the perfection of the capital market anddevelopment, investment philosophy are constantly changing, especially thetheory of value investing. The theory of value investing appeared in Chinastock market in2001,and became more and more important to investors. Thevalue investing idea originated abroad. It has stood the test of the market inforeign countries for decades.The fact proves that it is a successfulinvestment philosophy for investors, and it will play a positive role to thehealthy development of the stock market. But in our stock market, the valueinvesting theory is still far from being achieved by using the mature degree.From the beginning of2001,it was firstly being widely publicized, applied,thensuspected.Finally, investors choose a combination of application. Actually thisis the investor’s gradually mature performance.Stock value investing analysis is to analyze the performance of ListedCompany in the future on the basis of the long term observation about thestock price; is to evaluate the intrinsic value of the stock objectively andrationally, so as to reduce the investment risk by blind investment, to obtain lowrisk, high return on the investment opportunity. This paper is divided into fiveparts, the first part is a detailed analysis of the value investing about theresearch background and the significance, pointing out the positive effect onChina’s stock market development and the positive effect on the rationalallocation of resources in our country society. The second part mainlysummarizes the value investing idea’s origin in our country and it’s researchstatus, and details of the value investing theory foundation and intrinsic valueassessment methods, the main list of the comparative method, residual income model and dividend discount model. The third part states the use of theeffectiveness of the value investing in our country by the combination of theoryand Empirical Study, and key verify the feasibility and validity of the valueinvestment theory in China’s securities investment funds. The fourth part is thecase analysis, focuses on the empirical analysis, select a listed in HongKongred chips--Kunlun energy company, from the industry analysis, fundamentalanalysis, financial analysis, multiple angle to study the Kunlun energy stockintrinsic value, and the use of intrinsic value assessment model to calculate thestock intrinsic value, revealing the feasibility of the intrinsic theory of stockvalue investment. The fifth part is the summary of the thesis, pointing out thatKunlun energy is a very broad prospects for the development of the listedcompany, the stock’s growth potential is very good.It can give investors astable return on investment and is worthy of investor attention and investment.At the same time,it confirms that the value investing theory has very strongpractical value and will be able to guide investors to science investmentanalysis and decision, and finally beat the market.