China Securities Investment Fund Risk Management Studies

At present investment-security-fund industry is in rapid development stage. However, losses and bankruptcy caused by investment securities has been an endless stream, The United States Secondary Mortgage Loans Crisis in the world has brought investment-security-fund unprecedented challenges. The facts make people realize that risk management is a precondition if investment-security-fund wants to survive. How to manage and control of the increasing complexity of risk is the major issue for Chinese investment-security-fund's further development. From the theoretical viewpoint ,this paper make a systematic and comprehensive analysis of management and control of investment-security-fund's risk , according to different sources of investment -security-fund's risks , with auxiliary the analysis of evident method ,the paper make a detailed discussion about investment-security-fund's risk management from three areas on market risk, liquidity risk and internal risk. At last, the paper concluded and summarized the development of Chinese-investment-security-fund-risk's control and the gap, and makes the corresponding conclusions and recommendations from internal environment and external environment.This paper is divided into five parts.Introduction part discussed the thesis topic's background and significance , and introduced the review of the studies of investment-security-fund's risk management and the methodology of this research.Chapter one introduces the concept and developing process of securities investment funds, and analyzed the existing problems of china securities investment funds in the developing course. Before the concrete and in-depth analysis of various risks, the paper gave a more comprehensive understanding of securities investment funds with securities investment fund's classification , characteristics and the status of china securities investment funds, establishing the basic framework for further research.Chapter two analyzed the basic concepts and classification of securities investment funds risk, by the three risk of the securities investment fund: market risk, liquidity risk, and inner risk management. Using logically analyzing method based on principal-agent theory, the paper analyzed formation mechanism of the securities risk investment funds. At last, the paper analyzed empirical factors of opening securities investment funds flowing risk's formation.The third chapter makes a detailed study of securities investment funds risk management's methods .Using theoretical and empirical analysis, the paper conducted a in-dept discussion of the three securities investment fund risk management. On the basis of the asset portfolio theory, the paper made a in-depth discussion on two methods of market risk management -hedging and Var theory. Combining the situation of China's securities investment funds, the paper conducted a detailed analysis of liquidity risk management and internal risk management. Finally , the paper put forward the developing trend and the importance of China's securities investment fund.Chapter four put forward recommendations on China's securities investment fund-risk management from two aspects of the inner environmental control and external environment construct.