Stock selection and portfolio analysis of China’s insurance industry

Abstract

Based on the economic pattern and financial market environment nowadays, stock is becoming a much more beneficial and preferred investment means. Investors need to consider several factors as industry development, era background and social circumstance to decide if it is worth investing. This essay will focus the China’s insurance industry to see which portfolio or single stocks can be the most beneficial. Different factors will be used in this experiment to both analysis long term and short term of stock return. The stock price, stock return, and related market return will all be detected from official websites. Several financial models will be used like CAPM model as supporting evidences which will be most suitable for such an experiment. Eventually, a certain stock portfolio will be made throughout the best and most suitable allocating method. In conclusion, there definite exist specific weighed stock portfolio in China’s insurance industry for investing, the most suitable way of making portfolio is throughout the weighted average of market capitalization.