Study On The Influencing Factors Of The P/E Ratio Of China Listed Bank

Commercial banks finance system in our country is a very important part in the process of development of national economy, plays regulate the economy, credit creation, financial intermediation and configure the functions of financial resources. By the end of 2015,16 large commercial banks in the total market capitalization of A shares listed on 7.13 trillion, accounting for 15% of the total market value of Shanghai and Shenzhen,.Banking sector is also the first power weight sector of China's securities market. Thus, the banking sector's every move will directly affect the trend of the market index. The valuation of all listed banks' shares become the focus of investor attention. Since 2007, the price-earnings ratio of listed banks showed decreased year by year, present, the basic price-earnings ratio of listed banks in 10 times, far lower than other industries. As an important indicator of stock, the price-earnings ratio has been used to determine a reasonable return on investment and stock price range of important reference. Low price-earnings ratio of banks, attracted some investors who believe the price-earnings ratio of bank shares at a lower range, with high investment value. However, other investors believe the low price-earnings ratio, the share price is a reflection of the downturn, low price-earnings ratio of bank shares is precisely the reason not suitable for investment. So, in the end is what caused the banking sector generally lower price-earnings ratio, what factors affect the price-earnings ratio of banking stocks, which is the core of this paper is to study the contents.This paper reviews the concept of earnings, development and classification, introduced Gordon model, NPVGO model, RIVM model and Walter models classic model to derive earnings from different forms in different ways. Comprehensive introduction Calculation stock market average price-earnings and price-earnings ratio. Secondly, the theoretical analysis of factors affecting the price-earnings ratio, factors that will affect the bank's earnings are divided into three types:macro factors and micro factors, investor behavioral factors. Finally, the use of these investor sentiment indicators shots SPSS 19 component analysis, finally get a comprehensive reflection of investor sentiment index of investor sentiment CSI. The CSI and screening out the micro and macro indicators in conjunction with the market price-earnings ratio to do regression analysis, analysis of factors affecting the price-earnings ratio.By analyzing multiple linear regression conclusions drawn main factors affecting bank earnings:GDP growth, inflation, investor sentiment, net interest margin. According to the conclusions and make relevant policy recommendations for the bank management:First, commercial banks should adjust its business development strategy based on economic cycles. Second, by controlling the total amount of credit and optimize the structure of assets and other ways to prevent and control the interest rates increase liquidity risk arising. Third, strengthen the NIM management, restructure its business, reduce the occupation of economic capital, constantly optimize the balance sheet structure, improve the pricing level. Fourth, improve corporate governance, strengthen exchanges with investors, guide rational investor sentiment.