Risk Control and Portfolio Management of Investment in Chinese New Power Market

The paper makes analysis of the investment risks towards new power shares in Chinese stock markets based on Markowitz mean-variance model using Monte Carlo simulation for solution. Five stocks from new power fields, including wind, nuclear, solar, biomass, and hydrogen, are used to form the portfolio and get the optimal weights dynamics from 2006 to 2009. It's found that the optimal investment weights of solar energy and nuclear energy rise during the sample period. The hydrogen energy slightly decreases, while biomass and wind energies have obvious down turn. The results offer investors guide towards making decisions in new power investment to achieve the minimum risks.