The Studies Of Preference Function Of Individual Investors And Var Valuatation Of Bond Repurchasing In The RMB Money Managing Business

The paper focuses on the studies of RMB managing money business (RMB MMB). It first describe the fact of separation of capital market in China and deficiencies of the pricing, and take examples such as monopoly of national bonds repurchasing market, low-yield-and-high-risk situation in stock market which leads to unwillingness of investors and un-liquidity and un-pricing in the RMB MMB, on which basis this paper puts forward studying methods and thought trails.Secondly, the paper, in the review part, translates the meaning of equilibrium of market and pricing under this equilibrium according to Western classical economics and finance and depicts the pricing and the evaluating of finance products in the indeterminate situation of equilibrium theory. The prerequisite of equilibrium and pricing is positive correlated between yield and its risk among investors, i.e., the preference is concave. The review part also includes: the review of preference function, risks and application of VaR and interest rate models, etc. Thirdly, the paper advances that the un-equilibrium in China financial market is rooted by the un-correlation, and analyzes the forming causes of the un-equilibrium -monopoly-& the peculiarities-not leading to not-market-clearing situation in the counterpart of common goods, but uncorrelated between yield and risk undertaking among the participantsin the financial market - in the financial market in China, thus leading to the non-market orientation of interest rate, systematical risk of bonds repurchasing market and the RMB money-managing derivative depending upon this kind of systematical risks.Base on such analysis, the paper uses a systematical language to describe the preference of individual investors and operation & its risk of national bond repurchasing related to RMB MMB, and establishes models correspondingly. The paper provides a new vision for finance product design, which is based on many conditions of disequilibrium in real finance world in China. From this point of vision, I establish new models. The paper applies many disciplines, such as theorems in automation, finance, finance engineering, macroeconomics and microeconomics, to the studies.