The Optimal Investment Strategy In Chinese Stock Market

As one means of stock investment, stock portfolio strategy is widely applied in stock market in western country. In recent years, there comes out a phase in west stock market that basic cover analysis, technique analysis and portfolio analysis divide the investing means into three phases. Further more, the proportion of the investors which belong to portfolio turns out uptrend. Portfolio strategy is a contributing factor of the stabilization and development of the capital market in west developed country. However, because of the short developing history of stock market, the factor of that such as inadequate criterion in stock market and limitation of appliance condition makes the this invests strategy not be applied in Chinese stock market without regulation. This paper makes a detail analyzes to Chinese stock market on the base of the country's situation. Meanwhile, the paper discusses the problems that how to disperse risk and improve profit by using portfolio theory and demonstrating way.The paper talks about the purpose, significance and background at first. And the general situation of capital market in west developed country is introduced. Next, the portfolio strategy for China is researched after expatiating Markowitz compound model and its supposed condition. Combining Markowitz compound and Chinese stock market, 45 kinds of representative stocks is chosen out according to a certain reason. Their last two years' yield is calculated and model's best result is solved based on expected profit. Finally the portfolio model is analyzed demonstratively. The result indicates that with the expanding of the market scale and the gradually completion of the capital market, in the future stock investment, portfolio theory has its special advantage in the aspect of risk control and income measurement. During the process of the future investment portfolio strategy should be paid much more attention.