The Designment Of Investment Managerial Mode Of Institutional Investors In China Based On Risk Budgeting

In recent years, institutional investors in China have been growing rapidly. However, the management and operation in China still get behind those of advanced western countries. From 2000, the government has intervened the market by issuing a series of policies to standardize the investment operation of institutional investors. At the same time, the institutional investors attached more and more importance to investment management to adapt themselves to the development of the future.Based on these reasons, the article analyzes the present mode of investment management of institutional investors in China and introduces the advanced risk management-risk budgeting to institutional investment in China and explores the theory of risk-budgeting. Combining with the practices of our security market, this paper reengineers the investment managerial mode of our institutional investors, designing a new kind of investment managerial mode which is based on risk budgeting. The new mode replaces traditional assets scheme by risk scheme, which enhances the risk control ability and can meet the requirement of investors according to their different risk allocation formed by their different styles. The new mode improves the ability of risk control, especially in principal agent. At last, this paper points out that some applications of this new mode need to be tested by practice because of the limits of the external conditions of our security market.