Chinese Financial Security Index Construction And General Entropy Investment Decision Model Research

With the continuous deepening of reform and opening up,financial industry has witnessed rapid development.However,there are still many uncertainties in this development.Such uncertainties have caused investors to face enormous challenges in making investment decisions.After conducting a n in-depth study of China's financial industry and securities market,After conducting an in-depth study of China's financial industry and securities market,this article focuses on two aspects to explore: First,the current internal and external problems facing financial markets make the financial security increasingly complicated and diversified.therefore,establishing a reasonable financial security index system is of great significance to maintaining financial stability,by summarizing the previous lit erature on the construction of financial security index system,we can find that no scholars have summarized and analyzed the common indicators selected by their predecessors;Second,with the development of high-tech industries in recent years,investment has become the main problem facing C hina's financial market,many investors or companies pay more attention to the important influence of financial security in the investment portfolio.Therefore,based on the above research background,three main tasks has been done in this paper: The first task is to respond positively to the CPC Central Committee's call in this paper.Combining with the current domestic and international macroeconomic trends,we follow the five-point principle of being systematic,typic al,dynamic,concise and scientific,and comparable,operable and quantifiable.Summarizes the previous literature on the establishment of financial security index system,considering three characteristics of commonality,typicality and particularity,and establishes a new index system;The second task is to select the index data from 2006 to 2015,determine the weight of principal components by principal component analysis in SPSS21.0 software,measure C hina's financial safety composite index and evaluate the model results;The third task is to introduce innovatively the factor of financial security into the investment portfolio.Taking the stock investment as an example,we choose the annual closing price of 24 stocks in 14 industries in Shanghai from 2006 to 2015 as the sample,Calculate the annual rate of return using the EXCEL table,add the financial security composite index and stock return rate to the generalized entropy investment optimization model,and get the model results by Matlab2012 a software.This article provides reference and reference for investors to face the different levels of financial security,determine the correct investment portfolio and the reasonable investment al ocation ratio.The main conclusions of this paper are as follows:(1)The establishment of financial security index system and the comprehensive index meet the actual requirements;(2)The level of financial security has different impact on investors.In the environment of high financial security,investors tend to choose stocks with stable development and high income level when making investments.However,based on the idea of "profit-seeking",investors tend to prefer stocks with relatively high returns but relatively high risks;the less financially secure environment means t hat investors are not optimistic about the future market trend.When they choose stocks,they will choose to stabilize their stocks with relatively low yield level with the capital preservation as the mainstay.At this time,the risk level is relatively small.(3)Generalized entropy model has more advantages in measuring the degree of risk of uncertainty.Therefore,the research in this paper has very important theoretical and practical significance for the individuals in the market,institutional investment activities and the development of securities market.