Chinese Value Investing Theory and Quantitative Technology

Abstract

After nearly three decades of a hard journey, China's capital market has more and more clearly demonstrated the right value of value investing. A-share market participants - retail investors and institutions - are in urgent need of a value investing theory in line with China's national conditions. We realize that China's value investing system must be the joint value investing of China and the world. This paper proposes a value investing theory and quantitative realizing technology system with China as the main body and taking both China and the world conditions into account. The main contents include: 1) under the framework of big data, using the credit risk analysis for filtering out stocks with mediocre or poor credit; 2) multi-factor models of quantitative investment for selection of value and growth stocks; 3) deep learning financial market prediction model for capturing dynamic margin of safety and profit opportunities; 4) deep intelligent portfolio trading technology for implementing value investing into super intelligent systems of quantitative investment. The characteristics and innovations of the theory are: expanding the big data holographic credit risk analysis for Chinese enterprises to value investing analysis; developing comprehensive multi-factor models for selecting value and growth stocks into portfolios; developing big data-driven deep learning financial market prediction models; innovating and developing deep intelligent trading strategies and systems.