Research On The Measuring Model Of Class A Shares

The understanding and calculating of money flow in a gaming oriented and capitalized stock market has always been an intractable theoretical problem.First appeared in the 1970 s,the money flow index was increasingly commonly used for the past few years.Though some home financial analyst organizations offer their research report of money flow in a varying degree of regularity,few actually covers the range of application,using effects as well as relevant investment strategies.On the other hand,along with the continuous improvement of our country's capital market system,it will see an increasing number of companies going public on A share market in the near future.Unsurprisingly,the use of qualitative method would become less efficient in choosing high profited stock.However,the money flow index will not only shows investor behaviors effectively but also indicates fluctuation of stock price accurately.Therefore,it would be of great value for investors to closely examine this momentum index.As what has been expected,the results that revealed from innovated money flow index products benefited money makers and the whole market dramatically.One purposes of this essay is to find out the influence of money flow on stock market,and more importantly,on the basis of that I would like to develop a new stock selection model which can be used by equity holders to make better investment decisions.The internship in some funding house has enriched my knowledge in the field of money flow and the related stock selection model.By using the empirical data that I gathered from these companies and my extensive and comprehensive review on previous literature,I would firstly develop the measuring process of money flow index in A share,i.e.the theoretical aspect of model building.Then it would come to the main idea of this essay-to modify the model to have stronger practicality.Ideally,I hope this design would fundamentally popularize the usage of money flow index model in stock selection in China's stock market.The research design process is following: first,I would apply previous models that demonstrate the principle of money flow to measure daily cash flow of China's stock market so that I could find various indicators.Following that,I would use a specific information model to testify the theory of market overreaction.Then,the adverse selection theory and the application tool Matlab will be used to design the money flow selection model.To demonstrate the measuring process and validate its varification,a portfolio of duotou and duo kong strategies will be constructed.The research result shows that the model I built has a larger precision and higher probability to beat the benchmark.Despite the drawbacks of the research design,the money flow index model is still of great help and can be used to guide stock investors to make better decisions.