Risk Management Of The Fund Corporation

Along with the development and expansion of the financial market, the fund has developed into one of the important institutional investors of the securities market and gradually become the important strength that promotes the financial market and the securities market reform and perfect. With the continuous development of China fund market, the variety of fund from simple to mature, the size of fund from small to a large scale. By the end of 2010, the number of China's fund management companies has increased to more than 60. Fund company as a major institutional investor plays an irreplaceable role in China securities market development and the process of the reform of the financial market. At the same time, the financial products produced by fund have become the financial investment products which accepted by modern residents. Meanwhile, the huge risk and huge losses due to the improper trading let people to gaze at risk generated by funds. In foreign country, the tiger fund and the quantum fund have closed one after another. In our country,327 national debt forced wangguo and shenyin to be merged. All the events push the discussion how to better control the risk of fund company to the climax. China's fund market starting late than foreign countries, compared with the developed countries'market, our market has obviously backward and inadequate. In the background of global financial crisis and the depression of global financial industry, how to better control the risk of fund company has become a urgent problem of fund companies, and put forward higher request to fund company how to manage risk effectively. China launched Hu-Shen300 stock Index futures in the well prepared and appropriate time. Because of its role in hedging function, this provides an effective financial tool to control risk for our country's fund company. Stock index futures is a modern financial investment product that based on stock index, the participants can not only through the hedge transaction to reduce the risk of market system, more can through the higher risk leverage as effective tools necessary to profit. Participants can reduce the risk of market system through the hedge transaction and gain profit through the high risk leverage. Fund company as major institutional investors, facing new problems and challenges how to effectively use estimate futures hedging and better control risk effectively. At present, our country's most researches are limited to a single type of investment and investment tool, lacking of system research of comprehensive and new type of financial tools (such as stock index futures)which developed in the new situation with financial innovation. This paper based on the analysis of the csi 300 index data and calculate optimal hedging ratios. It provides a theoretical basis for fund company to use stock index futures market to hedge. The in-depth research also give the theory and practice proof to other financial institutions to make better use of stock index futures market hedging to circumvent the system risk, and broaden the thought and strategy of institutional investors in risk controlling. This paper also provide my own views of providing more effective use of the index for the investment, that has strong practical significance.