Relevant Statistical Insights Into The Bank Of China Equity Investment Value

With the development of Chinese securities market standardization, value investing isgradually popular. To a great extent, the investors get the information of the operatingperformance and financial situation of listed companies from the published financialstatements. It is very important for investors to evaluate the financial situation of listedcompanies in an objective and rational method which would be used to improve the returnon investment and reduce risk. Therefore,It is particularly essential for investors to find anobjective and scientific evaluation method.The market capitalization of listed companies inbanking stocks accounts for about a quarter of the overall market capitalization of A-share,and the banking sector is significant to predict the ups and downs of the stock market.Inaddition,the banking sector is lower than the market price-earnings ratio of the whole listedcompanies which receives extensive attention.This paper analyzes the equity investmentvaluation of Chinese listed banks by means of statistical methods which try to give anobjective financial evaluation method from the statistical point.This paper introduces several kinds of the classic valuation model at present stagewhich are used to systematically analyze the current domestic A-share market valuation ofbank shares.According to the operating characteristics of bank, I use ten financialindicators reflecting the status of commercial banks to build a comprehensive evaluationsystem, and compare the advantages and disadvantages of general analysis method andcomprehensive analysis method.At last,I use the statistical method of factor analysis tosystematically analyze the financial indicators of16listed banks in the domestic A-sharefinancial indicators comprehensive evaluation.Furthermore,the calculation of thecomprehensive factor score would be used to compare the book value of the stock. theresults of theoretical analysis can get the ranking of Chinese listed Banks stock investmentvalue theory analysis which would be verified the results of theoretical analysis by actualstock movement.Theory and empirical analysis comparison shows that most of the actual stockmovement is in line with theoretical results which proves the feasibility of investmentinformation by the use of comprehensive financial indicators evaluation system.It would beused to receive higher returns than the level of banking sector market average for investors.