Research On Theory & Development In China Of Credit Derivatives Market

In case that there is neither system theory research of credit derivatives market nor comprehension of its implementing instrument and technology in china, research topics are encircling basic problems of credit derivatives market, and trying to probe the development of credit derivatives market of china.Financial efficiency of credit derivatives is its basic of exist and development. Exactitude comprehension of credit derivatives helps to understand its financial efficiency and its administrative levels. Microcosmic financial efficiency is its demand factor, and magnificent financial efficiency is its supply factor. Concretely, credit derivativesHave been promoting the efficiency of financial institution such as commercial bank and institution invertors, the efficiency of financial market, and the financial efficiency of regulation and supervision.Precision pricing credit derivatives is its one of preconditions of exertion of efficiency of financial. Pricing credit derivatives must at first choose the measure model of credit loss, default model of credit event, the model of rate of recovery payments and the uncertainty of mean of default rate. Second, it is critic to choose one of structural model, intensity model and hybrid model for pricing credit derivatives. Basic model, foreign exchange analogy model, stock value model, credit spread model, credit rate model and hybrid model which is used to price multiname instruments are recommended and commented on in brief. It is more important to understand risk of credit derivatives than to understand its financial efficiency. To hurdle market failure and exert its financial efficiency, it is necessary to enhance levels of financial of regulation and supervision. Practice of regulation and supervision on credit derivatives in developed countries are analyzed in order to supply use for reference. Credit derivatives and financial engineering both better off each other, which makes Credit derivatives develop quickly, therefore, it helps to open out new financial instruments grasping outline of engineering of credit derivatives. On base of conclusion of theory research, the author outlooks the strategy and technology of development of credit derivatives market in china. The choose of path and concrete measure are analyzed, and the reasonable standard of resolvent of non-performing asset are brought out. To emphasize too much on non-market factor of form of non-performing asset will lead to moral hazard of commercial bank; it is criticalto solve problem of non-performing asset that we pay attention to how to prevent new bad asset from accumulating. While system reforms, according thinking of engineering, incentive systems are devised to solve problem of non-performing asset.Methods of research are established in nicety of theory commentate and practice recapitulation, in conjoint with longitudinal historical recapitulation and transverse comparatively research, in conjoint with positive analysis and criterion analysis, in conjoint with theory discuss and practice conclusion. As possible as I can, I expatiate problem from more orientation and more points of view. During all research, I try to Grasp the character and new trend of credit derivatives market, which aims to analyze the development path and countermeasure of credit derivatives market in china.