China's Securities Investment Funds Risk And Its Management

Risk and its management have been always the key theoretic project in security market as well as the realistic issue in momentary concern of the investors. At the turn of the century, a worldwide financial crisis has us more impressed than ever about the tremendous damage of the financial risk. Under the background of financial system reform and the entry into the "WTO", the financial market in our country, playing the role of the blood for the economic development, will take on an unprecedented complexity and sensitivity on the course of marketization and internationalization. Security investment fund is a new investment entity and form in the security market of our country. It will also turn to be a new investment force to be focused on in the future development of security market. As the principal part of security market, the security investment fund in our country is also faced with particular and complicated framework and market environment, hence be confronted with the particularly special risk environment, risk situation and risk management strategy. Extensive and in-depth theoretic research and empiric analysis on the risk issue of the investment fund in terms of risk analysis, measurement, evaluation and control based on the practical situation of our country not only plays an active role on the enrichment and development of the financial risk theories, but also is key to the practical guides and instructions of the healthy development of the investment fund in our country.This article consists of 13 chapters. Chapter one analyzes the concept of risk and profit and their relationship in theoretic perspective. Chapter two and three analyze and illustrate the feature, category, formation and identification of the security investment risk and the objective, principles and strategy of the risk management. Chapter four introduces and analyzes the status of American investment fund risk and its management and explores the reference and inspiration it brings the security market in our country. Chapter five to Chapter eleven launch theoretic analysis and empiric research on the institutional and market risk of the security investment fund in our country and its management. Chapter twelve analyzes and researches into the origination, development, risk and its management of the investment fund privately raised in our country. Chapter thirteen probes into the interaction and relationship between the financial derivation tool and investment risk management.This article try to build up a comparatively complete theoretic framework for the security investment fund and its management in our country based on the analysis and research of the current status of the security investment risk and its management, on which premise forming the foundation of empiric analysis and research. The article makes explorative attempt and effort on this issue. In term of research thought, the article use the theoretic achievements and methodology of modem institutional economics to analyze the institutional risk of the investment fund in our country and use market fractal theory to make explorative research and empiric analysis for the market risk of the investment fund in our country. In term of research methodology, the article combines the theoretic research with empiric analysis, qualitative research with quantitative analysis, logic argumentation with mathematical statistics, and systematic analysis with individual case study to illustrate the risk and its management of the security investment in a systematic and in-depth way. It's a comprehensive and complicated system engineering to research into the security investment fund risk and its management, where my experience and accomplishment inthis respect is only a minor attempt and there is still a long way to go. Also, due to the subjective and objective limitations, I have difficulties such as the applicability of the economic theory and research methodology, the scarcity of history data, and the accuracy of the mathematical statistics and model in researching this issu...