Study On Personal Financing Technology Based On The Life-cycle Theory

Personal Financing (PF) is an important mechanism that transforms saving into investment and that improves the function of financial system and continual development of national economy and welfare. PF has become an important economic phenomenon and the market of PF is growing circuitously with the farther reformation of economy system and development of financial market. On the one hand, the individual income and asset have increased heavily, but the approach of investing and financing is so lack that brings the weak ability of asset management, which induces the great development potential of PF considering anticipation of uncertainty from transformation of economy system. On the other hand, because of the faultiness of technique of PF and system of economy, the Personal Financing Service (PFS) provided by financial organization is immature and shortsighted, which induces the risk in the PFS and shortage of effective supply of PFS. In the face of those cases, the research and application of Personal Financing Technology (PFT) is significative for the exaltation of level of PFS.On the base of analysis of present circs of PF in China, the thesis introduced the life-cycle theory of financing, which mainly points out how to determine the optimal and dynamic strategy of consumption and investment based on the maximization of utility determined by consumption, leisure and bequest in the restriction of given economic wealth and condition. The theory is been becoming the guidance of PFS instead of portfolio theory owing to its property of life-cycle and hypothesis resemble of truth. And then, the technology of PFS was discussed in the frame work of life-cycle model of financing. Firstly comes the analysis of financial case and risk preference of individual in order to estimate and determine the parameter of model rationally. Secondly, the dynamic portfolio that is characteristic of life-cycle was designed on the base of simulation result of life-cycle model. The allocation of risky asset in the dynamic portfolio correlates with the individual age and risk preference positively, the income and financial case negatively. Finally, the VaR of portfolio was introduced in order to inspect and manage the risk of investment in the life-cycle continuously.In the present financial market in China, there are some obstacles of the application for PFT, mostly because of the shortage of regular actor, the underdevelopment of credit system and the inefficiency of capital market. Accordingly, the thesis conceived a new...