Data mining: The investment value analysis on China´s bank stocks based on residual income model

This paper is to evaluate the investment value of China´s bank stocks based on Olson´s residual income model. This analysis is intended for providing experience evidence for making rational investment decisions in China´s bank stocks. The experience analysis results show that the investment value of stocks of China´s listed companies in finance and insurance sector remained relatively stable, while there were frequent sharp fluctuations in the stock price, which deviated hugely from its investment value. What´s more, there were more bubbles in the market. But in the long run, short-term bank stocks market bubble will eventually burst. Most of time, China´s bank stocks market is characterized by rational bubbles, the rest of time by rational bubbles.