Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)

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Stock Model Analysis and Investment Strategy Based on Chinese-Style Stock Valuation System

Authors
Le Luo1, Pan Deng2, Yufei Zou3, *
1University of Washington (Seattle), Economics, Department of Economics, Seattle, WA, 98105, USA
2The Chinese University of Hong Kong (Shenzhen), Data Science, School of Data Science, Shenzhen, 518017, China
3University of California (Davis), Economics and Psychology, College of Letters and Science, Davis, CA, 95618, USA
*Corresponding author. Email: jennyzou0214@gmail.com
Corresponding Author
Yufei Zou
Available Online 19 December 2024.
DOI
10.2991/978-94-6463-598-0_43How to use a DOI?
Keywords
Chinese-style stock valuation system (CSVS); Multidimensional Valuation System; K-means clustering; Investment Portfolio Strategy; Economic Hotspots
Abstract

This study delves into the Chinese-style stock valuation system (CSVS), considering factors such as China’s economic transformation, regulatory changes, and industry upgrades. The research first establishes a unique valuation system based on multidimensional features (policy background, market positioning, and expert analysis), screens stocks that meet Chinese characteristics, and constructs profiles for these stocks. It then extracts the features of these stocks (risk indicators, growth rates, etc.), including using the ARIMA model to capture the dynamic fluctuations in stock returns. Subsequently, the K-means clustering method is employed to classify Chinese-style stock companies into five types. Finally, the study designs and empirically tests investment portfolio strategy combining CSVS and economic hotspots, using both Markowitz optimization and equal weighting methods. The event-driven strategy with Markowitz optimization as a weighted approach achieved a 13.54% return rate from January to June 2024, outperforming the traditional equal weighting approach and providing valuable decision support for investors.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
19 December 2024
ISBN
978-94-6463-598-0
ISSN
2352-5428
DOI
10.2991/978-94-6463-598-0_43How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Le Luo
AU  - Pan Deng
AU  - Yufei Zou
PY  - 2024
DA  - 2024/12/19
TI  - Stock Model Analysis and Investment Strategy Based on Chinese-Style Stock Valuation System
BT  - Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024)
PB  - Atlantis Press
SP  - 416
EP  - 435
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-598-0_43
DO  - 10.2991/978-94-6463-598-0_43
ID  - Luo2024
ER  -