Case Study on Investment Strategy in the Era of Post-Reform on Non-Tradable Shares in China Stock Market

摘要

By analyzing the market performance of shares of BISC, this paper proposes three suitable investment strategies for investors to make investment in China stock market in the era of post-reform on non-tradable shares. For premium-oriented investment strategy, the market premium of a listed company has been significantly affected because of the reform. For competency-oriented investment strategy, the listed companies with sustainable growth capacity and core competency should be much valued. These companies have the properties of owning natural resources, adequate marketing networks, idiosyncratic brands, monopolistic advantages and high replacement costs. While implementing premium-oriented investment strategy and competency-oriented investment strategy, the investors in China stock market should integrate financial derivatives investment into their investment portfolios for optimal control on the risks and returns. There are many quality companies for investors to make a choice in China stock market, but BISC should be one of them.