Applicate Value At Risk In Some A+H Banking Financial Product

Along with the growth of Chinese economy and the enhancement of incoming level, investor's demand explosive growth in finances. The financial product in the China's capital market has filled black between the low risk and low income deposit with the high risk and high income stock. To the investor, the financial product has met the complex diverse need of investment, it was obtaining the high speed development as a way of management customer's property. It is crucial for the sound development of the financial markets through guide customers based on personal risk preferences and risk tolerance to choose the different targeted products by quantitative the risk of finance.This article explains the feasibility by the technology in VaR measure at some concrete bank financial product to calculates the risk value through the utilization common used method of risk value. It is simple and brief as a quantificated tool in estimate the risk. In view of this concrete product invested in A+H financial markets, the case study and the empirical analysis method was used to analyze the correlation concrete data of one banking financial product in the article. So in domestic Shanghai market, the value of risk get by using GARCH model to simulate the ratio of new stock returns; in Hong Kong market, the value of risk calculates by using the index weighting moving average method to simulate the returns ratio of Hong Kong Hengsheng State-owned enterprise index. As a result, the mix VaR of the financial product is smaller than the value at risk of single investment simply weighted, it is demonstrate that the design of this financial product has achieved the effect on circumventing risk, it is conforms to the basic philosophy of modern investment profolio theory.Only forecast the risk value accurately in the reasonable scope,the VaR model will be suitable, these risk assessment model must perform to confirm in the two kind of markets (domestic A market and Hong Kong H market) through testing the model is suitable. Therefore the pressure test is also necessary in the application of VaR. This article simulated the value of risk in the similar extreme case, it exist flaw in this product by the stress test, the test indicated that the investment could not achieve the goal of spreading loss in two market.The risk quantification indicated that the risk of financial product may be promulgate to the investor intuitively and pecifically. We should standard the propaganda of financial product, let it reflected comprehensively characteristic and the important related fact in the product, inverstor should be showed the most disadvantageous investment situation and the investment badly result in the most striking position. it will be developed healthly and steadily through revelate the risk of the financial product.The compatible principle should be carried on designing financial product, the product should be benefited the customer and under the scope of the risk bearing capacity. From the investor's position, appling reasonable and scientific method to forecast the ratio of returns in investment profolio, the product will be desiged and the investment profolio will be determinated. It is sober understanding that the investor recognitize the market risk. Established the target of monitoring correspond market risk and measured the effect, the monitor and the control system can help the general investor felt relieved when they purchases the financial product. The financial product is approved by the investor as the investment channel that income and risk coexisted.