Bank Of Shanghai Stock Valuations

The 19 th National Congress of the CPC indicates that the development of Chinese society is accelerating and the economic structure transformation is upgrading.banking business is playing more and more important role in economic system.up to 2017 June,the added value of the financial industry account for almost 8.79 percent of the national GDP and shows a rising trend.as a leading trend in financing business.Needless to say,it is very important to study banking business as for it always dominates financing business.although the competition of banking business shows more fierce as for financial globalization,and interest-rate spread between deposit and loan squeezes and return on assets reduces,still,banking business is in unshakable status.up to2017 February,among our whole assets of national banking business is about 230 billion yuan,and assets of commercial bank are about 179.75 billion,account for 78.2 percentage,and deposits are about 166.42 billion,account for 78.4 percentage.Bank of Shanghai was found in December 29 th in1995.it used to be an urban commercial bank,and now it is a joint-equity commercial bank.Bank of Shanghai has great significance for the development of medium-sized and small enterprises in Shanghai.Besides,it advanced economic reform in Shanghai.Thanks to IPO in 2016,now Bank of Shanghai ranks 13 in Chinese bank business and it turns to an more important joint-equity commercial bank.Bank of Shanghai is one of first members of Interbank bond market and its bond trading volume breaks into the top10 of the national ranking for several consecutive years.Therefore,there are certain academic meanings of this paper,and important practical meanings combined with equity valuation of Bank of Shanghai.First,this paper gives a review of many original documents about bank's equity valuation and attempts to summarize the key issues.The paper tries to find a proper way to evaluate the bank's stock value through summarizing good valuation models.In conclusion,if we want to get a scientific result,we have to evaluate banks with absolute valuation method,supplemented by relative valuation method.Therefore,In this paper,the equity free cash flow valuation model is used as the main model,and the valuation model of the Market-to-Book ratio is used to evaluate the stock value of the Bank of Shanghai.The third chapter and the fourth chapter are the key contents of this article.The third chapter analyzes the valuation background,including macroeconomic analysis and banking analysis,and conducts in-depth analysis of the operation,profitability and risk situation of Shanghai bank.The fourth chapter is the valuation part.Finally,according to the results of the valuation,the author made a summary and gave some suggestions to the investors and the managers of the Bank of Shanghai.