Beijing Bank Financial Competitiveness And Investment Value Analysis

The world financial crisis has inevitably exacted a lot of negative impacts on the development of Chinese banking industry, but at the same time, this will also urge Chinese banking industry to reform and develop. At present, although the supervision and management system of securities market in China is not perfect and mature, bank stocks attract more and more securities analysts and investors’favor as an important sector in the securities market. Bank of Beijing, as a representative of the city commercial Banks in China, has made rapid growth and development and attracted more and more investors and potential investors’ attention with its advanced management concept in recent years.This thesis first discusses Chinese banking industry’s present development situation, distribution structure, development achievements and problems and risks in the process of development, and predict the future development trend of the banking industry. Then it analyzes the operating conditions of the Bank of Beijing (including assets, liabilities status, profitability and operating stability). Through using the method of factor analysis and selecting nine indexes (assets profit margin, provision for coverage, deposit growth rate, loan growth rate, total assets growth rate, liquidity ratio, rate of return on net assets, net profit growth rate and non-performing loan ratio) to establish the evaluation model, the comprehensive competitiveness of the 16 listed banks in China including the Bank of Beijing is analyzed. Finally the investment value of the Bank of Beijing is analyzed by using the P/E ratio method and economic value added evaluation method.Through analysis, it is easy to find that the comprehensive competitiveness of the Bank of Beijing is strong in the 16 listed banks in China and the Bank of Beijing stock is a kind of stock with stable growth which can give investors returns. This thesis is expected to provide the vast number of investors with some valuable opinions and suggestions in the investment decision.