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Dynamic portfolio management of strategic investment in Chinese banking sector

  • Jie Yang*
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

The paper makes analysis of the strategic investment risks towards banking shares in Chinese stock markets based on Markowitz mean-variance model using Monte Carlo simulation for solution. Three stocks from banking fields, including state owned, joint stock, and city commercial banks, are used to form the portfolio and get the optimal weights dynamics from 2007 to 2009. It's found that the optimal investment weight of city bank rises during the sample period. The joint stock bank slightly fluctuates, while state-owned bank has obvious down turn. The results offer investors guide towards making decisions in banking sector investment to achieve the minimum risks.

Original languageEnglish
Title of host publication2010 International Conference on Management and Service Science, MASS 2010
DOIs
StatePublished - 2010
Event2010 International Conference on Management and Service Science, MASS 2010 - Wuhan, China
Duration: 24 Aug 201026 Aug 2010

Publication series

Name2010 International Conference on Management and Service Science, MASS 2010

Conference

Conference2010 International Conference on Management and Service Science, MASS 2010
Country/TerritoryChina
CityWuhan
Period24/08/1026/08/10

Keywords

  • Bank
  • Optimization
  • Risk
  • Simulation
  • Strategic investment

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