Research On The Developing Market Of Foreign Exchange Investment In Financial Planning In China

The definition of the financial planning is"to manage one's own wealth"in China. As one of financial service,it means according to personal risk partiality,a short time,middle period and long-term demand or income goal,manage the personal property to the scientific,reasonable and planned one. No matter in home or abroad,the financial institutions launch the financial planning business because of the generous income.The theoretical foundation of the theory of financial planning originated from the monetary demand theory of Keynes' doctrine. The motive that Keynes holds the currency divide the monetary demand into three major demands: trade , preventative,speculativeness. These three major demands correspond to the three major levels of divide resident's wealth in financial planning which are daily using,deposit and investment. Economic people, as the market participant, the demand for the financing is the satisfactions to the monetary demand in fact. Therefore it has established the foundation of the theory of modern wealth management.The theoretical foundation of the theory of financial planning also include Friedman's lasting income theory,life cycle theory and capital assets pricing model.As the new development of the modern financial market, the structured financial product has already become a major investment tool at present,the one that has already developed on the European and American market. The diversified characteristics of the structured financial products can meet different needs of investors.The worldwide fast development of the structured financial products is also has significant meaning to develop the domestic capital market of China. The structured products can be diversified and become various forms such as fund, deposit,insurance,trust,etc. It can be a good deposit substitute and good choice of financial planning. It also drives the financial products innovation and derived product's development.The financial planning products in foreign exchange area of our country enter developing stage of high speed after 2005. These benefits from the People's Bank of China launched a series of foreign exchange policies and regulations after 2004. The development of financial planning of commercial bank in China also has the legal guarantee.Reveal from the statistics,Chinese local banks occupy a leading position in financial planning market at present,four state-owned banks and other 13 shareholding commercial banks account for more than 90% of the total amount of the whole issue. With the increasing opening-up of China`s economy and more investment of the foreign banks,we should gain more professional experiences from the western countries and integrate the wealth management business in global financial market.This essay analyzes the developing of the financial planning in foreign exchange investment of our country and attempt to introduce the typical case of structured products in China. Considering the hot points of the present finance planning market, the essay also brings forward the chief work that the commercial banks need to do in the near future.The first part of the article elaborates the theoretical foundation of financial planning. The second part explains the vast finance demand in financial planning market of Chinese residents. The third part studied the current situation and development of Chinese financial planning and structured products under the innovative background at home and abroad. The last part puts forward the suggestion of setting up the personal finance managing system of our commercial banks and the suggestions to improve the external financial environment.