Portfolio In China's Bank Personal Financial Services Research

Personal finance business is fresh in domestic commercial banks. There is a long distance between the supply and the demand of personal finance products. Almost all commercial banks cannot offer the exact products that the customer desires. At the end of this year, with foreign banks coming to China, which have fully developed personal finance business, domestic commercial banks will face more challenges. How to increase the diversification of the products to meet the needs of customers whom commercial banks want to maintain or obtain is an important research in finance. Therefore, the thesis in which the author attempts to introduce Portfolio optimization model and quantitative analysis method to domestic personal finance business on the basis of customer subdivision using portfolio theory is the theoretical basis of increasing diversification of personal finance products.There are five chapters in this thesis:The first chapter is a general introduction of personal finance business, including concepts of personal finance, the present condition and problems of personal finance products and the reason of the problem, proposing that commercial banks should make investment plan on the basis of customer subdivision.The second chapter discusses about investment plan. First, the paper analyzes the theoretical basis of investment plan including Modern Portfolio Theory and Behavioral Financial Theory, and then introduces the investment tools, which can be used in personal finance business.The third chapter divides customers into three categories: risk avoidance, risk neutrality and risk preference. How to distinguish the customer's risk attitude? The paper introduces the factors which can affect the customer's risk attitude and the method of how to asses the risk attitude.The fourth chapter sets up two static models. One is Markowitz mean-Variance model in which VaR is introduced for risk-avoid customers and risk-prefer customers. The other is optimal portfolio model based on different coefficient for risk-neutral customers.The final chapter sets up a Dynamic Portfolio Optimization Model. Comparing to the above models, it is more practical.The last two parts are the core of this thesis.