Research On Credit Risk Management Of QDII's Investments

The introduction of QDII system provides a good opportunity for Chinese capital to participate in international competition and share the fruits of global economic growth. However, the world is facing with serious credit risk. So, it is very important for Chinese institutional investors to keep away credit risk and avoid loss.Chinese institutional investors are weak on credit risk identification, control capabilities. It is a major issue for institutional investors to improve credit risk management. In theoretical part, the article studies theories related to credit risk deeply and combines theories with QDII's outward investments. This article also sums up the external and internal reasons to QDII's investments and put forward suggestions about avoiding credit risk. In empirical part, the article makes empirical analysis on RBS based on the study of KMV model, which is the most widely used credit model.The innovation of the article is to focus on credit risk faced with QDII outward investments, combining with analysis of actual cases by using KMV model, putting forward some helpful suggestions to questions faced with QDII's investments, including QDII investment management capabilities, establishing control system and strengthening risk education and so on.