The Application of the Data Mining Technology in the Stock Market Based on A-share Real Estate Companies

After more than two years of adjustment, the real estate companies have gradually adapted to the new policy environment and enter again into a high-speed development period. The object of this paper is to discuss the investment approach of the stock market. The paper introduces the presentation of data mining technology applied on the analysis of the stock market. Through the factor analysis method, the paper analyzes these real estate companies that have released the 2011 annual report on the A-share market and discovers four factors which can be used to evaluate the performance of the housing companies. The investors can choose the share of the companies with a good score on the factor growth ability for a long term investment,or they can choose the share of the companies with a good score on the factor profitability for a short term investment. But in the process of the investment decision-making,the investors should not ignore to consider the score of the factor solvency and the factor assets operation.