Shixian Gao is a securities analyst and fund manager and has been engaged in capital market investment work since 2011. He is currently the general manager of a Chinese investment fund company, responsible for equity investment, securities investment, and asset management.
He will defend his Executive Doctorate of Business Administration (EDBA) in September 2023, on the theme “”Portfolio management strategy with public offering of fund”” under the supervision of Professor Marco Heimann, professor at the University of Lyon 3.
Thesis Direction
Pr Marco Heimann
Thesis Title
Portfolio management strategy with public offering of fund
Abstract
China’s stock market has been in operation for over 30 years. It has developed from the initial eight stocks to over 5000 listed companies, with a total market value of about 85.5 trillion RMB (equivalent to 11.3 trillion euros). Investors have contributed the greatest support to the development of China’s stock market. However, there are only a few of them who can earn income from their investments. Therefore, this paper asks how to adapt classical portfolio management strategies to the Chinese stock market to help investors earn sustainable income? This paper first reviews the historical literature of classical portfolio management theories, including the mean-variance model, the capital asset pricing model, arbitrage pricing model, Fama-French three-factor model and Carhart four-factor model. The paper then proposes investment strategies adapted to the Chinese market based on the classical portfolio management theories. They are respectively the multi factor investment method, the popular industries investment method, the market sensitive investment method, and their comprehensive usage methods. The empirical part draws on quantitative analysis to backtest the historical performance of the investment strategies. It intends to test the hypothesis that the developed strategies (named multi-factor, popular industry and market sentiment method) can each individually outperform the broad Chinese stock market. The results will not only fill a gap in the literature by providing an application of portfolio management theory to China’s public offering of fund market, but also provide investors with good investment strategies and help them obtain sustainable investment returns. Finally, it will help China’s securities market to attract long-term funds and realize the healthy and sustainable development. The research process starts with literature and theory, proposes hypotheses, collects data to validate hypotheses, and establishes a new theory. The research method used in this research is the quantitative analysis method. The data collected and analyzed are mainly China’s stock market data, public offering of fund yield data, fund industry data and investor profit data during 2012-2022, including annual and monthly data, etc. The number of original data collected is more than 20000, all from the open market.