The Analysis Of Stock Retum Of Security Analyst Recommendation In Chinese Stock Market

For the Chinese investor, the security analyst recommendations can always be seen in many mediums. In each newspaper, magazine, broadcast and TV program, the various security recommendations can be seen anywhere. In China there are large numbers of security investors do not know how to invest and the security analyst recommendations act an important part in the security market. Then how about the stock returns? Until now few literate has studied on the security analyst recommendations. Actually the audiences attach important to it and want to know how much they can get the returns. This paper tried to investigate this problem.This paper introduces security analyst recommendations and their effect at first. With continual development and improvement of security market in every country, the industry of security analyst was came forth, and get great development. Security analyst is the professional market researcher. Compared with the other common investors, security analyst needs the excellent professional knowledge, and they can acquaint themselves with the security market. The candidates of security analyst must past a series of strict exams, then they had been chartered to deal with invest conducts. Of course they need to be enforced compliance with the code of ethics and standards of professional conduct. There are some organizations to supervise and manage the security analyst. The Securities Association of China (SAC) has the responsibility to supervise them in China at present. With the development of the security market, the position of the security analyst gets more and more important. The task of security analyst is to avoid dramatic volatility in security market. Their basic analytical instruments are based on the investigation, and focus on the intrinsic value of security. They put out their recommendations grounded on the bias between the intrinsic values and market capitalization, so that they can avoid so much gamble conducts in existence. In addition, security analyst has important contribution to the construction of the efficient capital market and the rational allocation of the national saving. By the analyzing and appraising of information in the stock market, and applying their professional knowledge, the security analyst can make the pricing in capital market more rational. From the point of view of...