%0 Journal Article %A Zhongming Liu %A Daniel J. Borgia %A Travis L. Jones %T Valuation of Chinese Equity Based on Implied Growth Rates %D 2015 %R 10.3905/joi.2015.24.1.053 %J The Journal of Investing %P 53-66 %V 24 %N 1 %X This article introduces a valuation method that can be used to back out the short-term expected growth rate implied in the prices of Chinese stocks. The proposed methodology involves reverse-engineering the traditional DCF models, which is then applied to a sample of 467 listed Chinese companies. Our findings show that the implied growth rate generally is much higher than its actual realization, with all median estimation errors larger than 90%. This study has practical applications for investors and traders, since it does not require access to private information or analysts’ estimations and provides a useful tool to critically evaluate Chinese stock prices.TOPICS: Fundamental equity analysis, emerging %U https://joi.pm-research.com/content/iijinvest/24/1/53.full.pdf