The Research Of The Management Of Market Risk For WT,Ltd.

Comparing to traditional industry, the Hi-Tech industry can bring high appreciation and high economic benefits. Meanwhile, the Hi-Tech industries have higher risk. Most of newly established Hi-Tech companies invest much more money in R&D. They have lower liquidation value and lower rate of physical assets. The cash flow that company business activities produced is often negative value. And their history is a bit shorter. As financing in these companies, there aren't enough historical data records, the information asymmetry problem is serious, fewer factors (such as profit ability, the security index of finance) can be observed and verified etc... So, the risk characteristic of newly established Hi-Tech company seems more outstanding, and it seems more meaningful to study the market risk management of newly established Hi-Tech industry. WT, which mainly engaged in designing and selling Integrated Circuit, has been established less than three years as a Hi-Tech company. Facing a series of uncertain factors of the internal and external environmental conditions, it is quite important for the development of WT to distinguish the market risk clearly and manage market risk effectively. At first, this paper analyzes the current market situation and the business modes of WT, and a conclusion is drawn that industry development trend is optimistic and sale channel is narrow. Secondly, having compared and analyzed a large amount of the domestic and foreign papers about market risk management, the author lays special stress on studying the competition risk,...