Research On Investment Risk Prevention In Stock Market

With the establishment of stock market in China the domestic and international scholars have been engaged in extensive research on stock market risk control. Their theories on drawing lessons from the foreign risk theories and analysing tools including: Security making up;Assets fixing price;Market validity;Value analysis of investment;Application of VaR.In view of the developing period of our stock market at the present stage there are a great deal of defects of external environment condition in market developing and the instable performances of corporate business.The low quality of investors and the lack of risk prevention mechanism impel us to set up the investment risk evaluation system to strengthen the management of risk analysis in stock market conscientiously.The thesis has summarized the characteristic of the stock market in our country through the deep analysis in the subject matter:Pointed out the main risk factors of equity investment through the deep analysis in the origin cause;Structured the investment risk evaluation system with the assessment principle and method;Proposed the positive risk control strategy and countermeasure richly through the multi-disciplinary knowledge research.Based on the real characteristic of stock market in our country, the thesis has studied the investment risk of stock and the management controll theory systematically with the comprehensive research including: market investigations;theoretical research;determine the nature with ration and positive research. The thesis has used VaR (Value-at-Risk ) namely the risk value theory to carry on the positive research with one open stock fund in our country. VaR is defined: the potential change of the market price in any kind of financial carrier (stock, bond, investment combination ) in definite time and terms of future. The range in VaR system is very extensive and it can be divided into the following kinds: Economic condition such as the fall of interest rate or the inflation rate; Market condition such as the rising, dropping or turbulence in stock market; Credit condition such as the credit rating of the bond and the management of the targeted company. Giving the definite condition, the value of VaR means the largest range value of its price change in some time of future.The thesis has been divided into three major parts. The first part has described the forming law of the investment risk and recommended all sorts of risks in the investment market in terms of the investment environment and risk factor offering the basis on which the investment risk of the stock is controlled; The second part has probed into the risk control strategy and countermeasure and proposed the risk control theory to set up the investment risk control systematically; The last part has carried on the positive analysis to set up the risk evaluation system taking VaR as the core part finally.The thesis has made much effort to propose the risk control method through the positive research for a domestic open investment fund.