Research on Asset Division and Evaluation Methods

Abstract

With the deepening of globalization in the world, the economies of various countries are also pouring into the international financial market. Against this background, China's securities market is also coming into the opening. China's inclusion in MSCI China Index has made it more attractive for global funds. However, since its inception in the early 1990s, China's stock market has been viewed as highly speculative always, which will interfere with investors' investment behavior. To allocate funds reasonably in the A-share market better, investors need to classify assets and formulate different stock selection strategies for different types of assets. Therefore, this topic is focused on how to select stock and how to evaluate assets from different views. We analyze different stock selection strategies through accounting, mutual funds managers, stock market and traditional views with various calculating methods. Through summarizing several related research, we found that the effectiveness of the Fama-French three-factors model in the Chinese stock market is poor and the investors' sentiment and the number of retailers both make a difference in investors' stock selection strategies. To evaluate assets, we discussed the evaluation of tangible and intangible assets separately. We conclude that it's easy to process data for intangible assets and this calculation method will perform better in the Chinese future market.