Risk Decision & Risk Management In China Stock Market

Both international experience and China's practice show that securities market is a risky one which is like a two-edged sword; As far as the historical path of the development is concerned, risks of the securities market exist from the very beginning of the market itself.Risks coexist with the securities markets everywhere, and their potential hazards are increasing with social and economic development, therefore, risk -bearing decision and risk management is not only a long time issue, but also a very important and urgent one!Studies on the risk management began from the late 1980s in China, some scholars introduced such theories as risk management and safety systematic engineering into China, a few companies obtained satisfactory effects in applying foreign useful experience to identify, estimate, evaluate and control risks, theories and practice of risk management in China have achieved new progress with the developing and deepening of China's economic reform.In this thesis, I will endeavor to analyze the issues of risk -bearing economic decisions and risk management in China's securities market in the viewpoint of one seasoned participant of the market.The major conclusions are as following: risk -bearing decision and risk management are very important, especially for such developing securities markets as that in China which is saturated with transitional institution arrangement. As is well known to us, China's securities market has unique characters different from those of developed countries, such as the existence of stated-owned from those of developed countries, such as the existence of stated-owned stocks and corporate stocks, planning elements of the issuing mechanics, etc. these temporary institution arrangements are reasonable and fitful for the reality of China's economic reform. I will try a preliminary exploration of risk -bearing decision and risk management of China's securities market with participants. I wish my endeavor will somehow contribute to theoretical research on China's securities market.