| Author | Zhao, Weilu |
| Call Number | AIT RSPR no.SM-05-02 |
| Subject(s) | Stock exchanges--China
|
| Note | A research study submitted in partial fulfillment of the requirements for The degree of Master of Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-05-02 |
| Abstract | Nowadays, China's stock market has become an important component of the economy in China. Although China kept high GDP growth for the recent three years, the Chinese stock market fell nearly 40% from the middle of 2001 up to 2005. The most important characteristic is that most of the listed companies are state-owned firm without much growth, and the market is an emerging securities market that lacks sufficient transparency and company governance. Many listed companies and brokers disclosed several kinds of systematic and unsystematic exposures, even accounting falsehoods and problems. Thus, stock selection and risk management become challenging for asset allocation in the Chinese Stock Market. This study takes a detailed analysis for the major risks in China's market, and these risks have destroyed the stock market standard development, and make almost all the theoretical models useless in China's market. Thus, understanding the risks is a requirement to invest in China's stock market. Under the comprehensive analysis of the Chinese stock market risks, top-down, three-step approach is recommended for the valuation process and risk management strategy. The three steps include: general economics analysis, industry analysis, and company analysis by following the open-end funds' portfolios. Utilizing the approach will minimize the risks of false financial information, governance and other risks that only exist in China's stock market. Using this approach makes the investment strategy adapted to China, and effectively find the stocks in practice that are worthy of investing due to their values and growths, and eventually earning reasonable returns from the investments. |
| Year | 2005 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-05-02 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Kouwenberg, Roy; |
| Examination Committee(s) | Tang, John C. S.;Venkatesh, Sundar; |
| Scholarship Donor(s) | Partial Scholarship of Asian Institute of Technology; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2005 |