Investment Value Of China’s Listed Banks

In the end of2012, the listed Banks valuations are the lowest in China’s history. China’s whole banking industry is as much as6.5times; the net profit ratio is of1.25times. Among them, the bank of communications, Shanghai pudong development bank and Everbright bank p/e ratio is less than6times. Bank of communications, Shanghai pudong development bank and China Citic bank city net rate is around1.1times. With the steady development of macro economy, monetary policy is gradually loosening, banking sector’s balance sheet, the profit level of growing, and all these factors indicates that bank stock investment value has been revealed.As the opening and improvement of China’s capital market, institutional investors team is growing, which means it is an inevitable trend to join the international securities market. Meanwhile, the idea of value investment is becoming more and more approved. Theory and practice has proved that value investing in the meaning of "value" is the result of the listed company itself, which includes the tangible assets, earnings, dividends, also includes intangible profit ability, excellent management, or to expect in the future. Investors make an investment through the deep research in specific industry expertise in listed companies, which is called value investment.It is not the length of holding shares that distinguish between the standard of value investment, which really matters is the capability of investors to the.whole market and investment industry. The author intends to stand at the level of value investment, through the theoretical and empirical combination of lay particular stress on the empirical analysis, to analyze the investment value of listed Banks in China. Through the analysis of the banking industry and the national macroeconomic indicators analysis, research and analyze the impact of external factors on China’s listed Banks. Combined with the characteristics of listed Banks, using data envelopment analysis (DEA) model from the bank’s manpower and material resources, financial resources from three aspects such as the six financial index as input and output item16listed Banks in our country are analyzed overall operational efficiency, study the effect of internal factors on the listed Banks in our country. Finally figure out the most valuable stocks for investors and provide reference for them.Five chapters are included.The second part is the theory analysis of investment value of listed Banks in China. It reviews the theory of investment value of the listed Banks, which mainly includes and summarizes the previous definition of value investing. Meanwhile, this part analyzes the factors of influencing the investment value of listed Banks in China from the external factors (market) and internal factors (itself).The third part is about China’s banking industry and macroeconomic analysis. The external factors that can the investment value of the listed Banks include the banking industry and macro economy. First of all, this part gives a integrate summary about the banking industry and then elaborates the advantages of the development of banking, which easily draw a conclusion that investment banking is worthwhile. Then it analyzes the present situation of our macroeconomic operation and the impact of macroeconomic indicators for Banks, using the statistical method of multiple regression analysis, the sample range from2009to2012to the empirical analysis of macroeconomic data, bank stocks and macroeconomic indicators there is relationship in our country, but the strength of the impact of bank shares.The fourth part is based on the DEA method empirical study on investment value of listed Banks in our country. The internal influence factor of investment value of listed Banks is the bank itself. In this paper, the author take the evaluation of operational efficiency as a standard, using DEA method, select the appropriate input and output indicators to measure efficiency of bank management. Finally, figure out the relatively high efficient listed Banks.The fifth part is conclusion and revelation. Through the empirical analysis results of above, it is concluded that reasonable investment advice to investors, and empirically summed up the enlightenment to regulators and the banking sector.This paper uses a multiple regression analysis and data envelopment analysis (dea). From the macro and micro level, it analyzes the external cause and internal factors that affect the listed Banks in order to fully reflect the investment objectives. However, there are still some studies that have not been studied sufficiently. This paper does not take operating environment of listed Banks in China into consideration. Besides, the environmental information variable has not been introduced into the model, which could make the model more efficient and get more close to the exact efficiency value.