Data mining: The investment value analysis on China's bank stocks based on residual income model

Abstract

This paper is to evaluate the investment value of China's bank stocks based on Olson's residual income model. This analysis is intended for providing experience evidence for making rational investment decisions in China's bank stocks. The experience analysis results show that the investment value of stocks of China's listed companies in finance and insurance sector remained relatively stable, while there were frequent sharp fluctuations in the stock price, which deviated hugely from its investment value. What's more, there were more bubbles in the market. But in the long run, short-term bank stocks market bubble will eventually burst. Most of time, China's bank stocks market is characterized by rational bubbles, the rest of time by rational bubbles.