INVESTMENT OPPORTUNITIES FOR PHARMACEUTICAL STOCKS IN CHINA

Abstract

The number of Chinese stock investors reached 160 million, of which retail investors accounted for 99.76%. However, many retail investors are in a state of blind investment, they do not know how to choose the stocks they invest in, and they blindly rely on rumours to invest. Their thinking is speculation, and they believe that investment depends on luck. In the end, Chinese retail investors lose more than 100,000 yuan (US$15,000) per year. The research's long-term goal is to analyse China's pharmaceutical stocks as an example to provide retail investors with stock investment recommendations. This study aims to provide a comprehensive overview of the literature on the analysis of China's pharmaceutical stocks and China's pharmaceutical industry's development. Stocks with investment opportunities and investment value are usually called value stocks and growth stocks. They are characterized by the company's products with high market penetration and high market demand, stock indexes with high industry performance, undervalued stock prices, and Continued growth in stock prices. This study selected 20 Chinese pharmaceutical stocks for a comprehensive analysis, the purpose of which is to identify whether Chinese pharmaceutical stocks have investment value. This study's research methods are mainly descriptive analysis, correlation analysis, and linear regression analysis. The secondary data collected includes SZSE, SHSE stock data, third-party securities analysis reports, and selected companies' annual reports. The research results show that 14 of the 20 selected stocks are screened as value stocks and growth stocks. Therefore, China pharmaceutical stocks have investment opportunities and investment value.