Commercial Bank Of China's RMB Financial Product Yield Analysis Of The Factors

As the fierce competition of China's commercial banks and the interests'marketization, the traditional operating profit of commercial banks is margining to narrow, and the credit risk is continuing to gather in recent years. In order to improve customer service, banks are making efforts to expand the scope of services, increasing the number of projects, and developing new varieties of business. After China's accession to the WTO, foreign banks use their huge financial strength, flexible operational mechanism and rich management experience to attractive high-quality customers. Intensifying market competition forced domestic commercial banks began to open up new areas of business so as to make new profit growth. Personal Financial Services with its characteristics of wide field, multi-volume, small risk, individualized offer, stable income, etc. are becoming an inevitable trend for commercial banks'survival and development.The Personal Financial Services of China's commercial banks are still beginning at present. Financial laws and regulations, as well as the banks'own problems restricting the development of personal finance market. Such as the constraints of separate operating systems, serious phenomenon of homogenization, and the lack of highly qualified financial managers, etc. These banks'products and services for middle or high-end customers are limited right now, so they are unable to meet customers'individualized require and differentiated demands.There are two kinds of personal financial products of China's commercial banks: RMB financial products and foreign exchange financial products. It is less than 3 years since China's first RMB financial products in October 2005, but it has developed rapidly. From the beginning of the bond to the later-type structure like trust, China's RMB financial products are continuing to innovate, and to make every effort to meet the needs of different groups of investment.The reason why investors chose the RMB financial product is for the yield which is higher than bank savings deposit, as well as less risky and so on. The author has satisfied 397 financial products from China's commercial banks and foreign banks since march to the end of may 2008 to analysis its characteristics and the trends.From 397 RMB products, the author select 84-bond financial products, and selected for several affect factors which have a greater role to its return as the arguments of the analysis model. For instance, the credit level of the issuing bank , The financial period, the calculation pattern of earnings, principal of the guarantee, whether banks and customers have the right to early termination, and so on. After doing regression analysis with spss12.0, the author concluded that: The investment period of product and the yield have a positive correlation. When the period increased by one percentage point, the increase in the yield can get a 0.310 percentage points; no guarantee of principal products will also increase the income of investors; investors have the right to terminate ahead of schedule and is expected to yield a negative correlation; banks have the right to terminate ahead of schedule will also increase the investors'return etc. After adding the type of bank in regression analysis, the author raised: whether small local banks could achieve the expected yield level is questioned.