The Elementary Study On Modern Market Risk Management In Chinese Stockjobbers

Risk is worth, that is to say, taking risk means obtaining a return and managing risk need paying cost. The relation between risk and return with the pricing of risk has been becoming the kernel parts of modern financial theory, all of CAPM, APT and the option pricing Theory have contained plentiful basic thoughts on the analysis , pricing and management of risk and have become a stable theoretic foundation of the creation and development of modern market risk management.Risk is the basic property of financial system and risk allocation is its basic function. . Nowadays, tools dealing with risk are created under the influence of the trend of financial globalization, deregulation, liberalization and securitization. The quantification and modelization of modern financial risk management embodies mainly at the market risk part, whose evolution makes up one of the main component of modern financial risk management. VaR, a risk management method, has been developing in response to increasing market risks.It will take long time for us to apply the theories, models and techniques of modern market risk management in china. . At present, Chinese financial risks are characterized by the follow factors, including: latency, tradition, system and interlace between the factors of history and of real life. The risk management activities in stockjobbers are provided with such questions as indefinite main bodies, unhealthy inner control systems,deficient management instruments, undeveloped quantificational managements, seriously deficient capable person and imperfect base of law. Because the development of the Chinese market economy and financial system is in the elementary Course and the condition of the application of modern financial risk management theories and techniques in china is immature, theories, models and techniques the paper researches lack elementary condition of application in china.Aiming at the factors which restrict modernization of Chinese risk management in stockjobbers, we should combine construction and consummation of the risk management system with reforms of whole financial system and even that of economic system. We should keep healthy, stable, properly developing macro-economy atmosphere. We should promote our ability of managing risk by competition, communication and cooperation in the course of opening-up. We should strengthen the construction of financial regulation system, consummate the financial market and foster persons with ability on risk management. China has become a member of WTO in 2001 and stockjobbers in China have to be opened up. The opened stockjobbers will be sure to meet grim challenges while WTO brings us opportunities of growth.