Trading Financial Assets, Investment Strategy And Financial Risk

Trading financial assets are usually considered to be two-edged weapons. On one hand, it raises a company's profitability; on the other hand, the company is also faced with management risks. Derivatives, an important type of trading financial assets, are also regarded as two-edged weapons for the reason that they are introduced to minimize risks but can even bring about larger risks, having both positive influence and negative influence on a company. The company has to deal with both the positive and negative influence that trading financial assets generate. With the development of economic integration and financial globalization, it is highly necessary that a company must minimize the negative influence of trading financial assets while maximizing their positive influence.The study of investment and risk management in trading financial asset concentrates on its econometric attributes, investment management and risk control. It focuses on three aspects:firstly, it focuses on potential risks incurred by the traits and econometric attributes of trading financial assets; secondly, it studies investment strategies of trading financial assets in different types of companies; thirdly, it deals with the establishment and operation of risk management system that consist of an array of financial indexes. To achieve these goals, we must have four breakthroughs. First, definition breakthrough. The study is not restricted by the definition of financial accounting. Second, content breakthrough. The study is not merely based on the theory of accounting practices of trading financial asset, but on the combination of theory and practice. Third, perspective breakthrough. The study is not the one that researches risk management of a certain type of trading financial asset, but analyses the risk management of trading assets in different kinds of companies. Four, mindset breakthrough. This dissertation is not confined to the debate of the concept of fair value, but studies the behavior and results of trading financial assets in different types of companies from a higher perspective, and proposes a trading financial assets risk management and control system consisted of financial accounting indexes.The research of investment and risk management in trading financial assets focuses on its management of the investment strategy and risks, so that trading financial assets can optimize related financial indexes and financial statement. Therefore, financial indexes, especially risk financial indexes, connect all parts of this paper. Firstly, the trait of trading financial assets and econometric trait of fair value have a tremendous impact on the fluctuation and of financial indexes. Secondly, the research on the investment strategy of trading financial assets can optimize financial indexes. Thirdly, the management and control trading financial assets are based on the establishment and operation of risk financial indexes design. Finally, investment and risk management level can, to a large extent, be reflected from the fluctuation of risk financial indexes. The more the financial indexes optimize, the higher the investment and management level, and vice versa. This dissertation consists of 13 chapter, which are arranged by the logic of "raise question-analyze question-resolve question".Chapter 2,3,4,5 analyzes the concept, types, econometric traits, concerning debate and potential risks of trading financial assets from the macroeconomic perspective, creating a basis for analyzing risks, investment strategies from the microeconomic perspective. As a matter of fact, it is natural for the price fluctuation of trading financial assets, and also its risks. For a company, risks of trading financial assets can be reflected from financial indexes and financial statement. Therefore, it is highly necessary to introduce the econometric traits of trading financial assets.Chapter 5,6,7,8,9,10 analyzes potential risks, investment status quo, risk acceptability and risk management and control of different types of trading financial assets. Chapter 5 combines macro analysis with micro analysis, and presents some suggestions. From chapter 6 to chapter 10, this paper researches trading financial assets in different types of companies, including financial companies, non-financial holding companies, state-owned financial companies, enterprises (listed companies) and public benefit funds.From chapter 6 to chapter 13, this paper gives suggestions on managing risks of trading financial assets, including investment strategy suggestion and risk management suggestion. Chapter 11 emphasizes the importance of enhancing financial indexes design of trading financial assets, including common financial indexes and detailed financial indexes. Chapter 12 recommends establishing a risk management system on trading financial assets, including its mechanism and concrete techniques. Chapter 13 focuses on the importance of relating government departments to laid out investment guidance and risk management suggestions.