Research On The Operation Mode And Risk-return Analysis Of Bank Financial Products

In recent years, investing market continues its downturn tendency. Macro-control policies on property market begin to show their effects. As a result, more investors start to pay attention and buy financial products. Meanwhile, financial products issued by different commercial banks explode in terms of both quantity and scale. However, theoretical researches on financial products, especially their mode, are quite limited, as financial products are merely emerging in China. After the U.S Subprime Crisis, commercial banks in each country begin to attach importance to the qualification of basic financial assets and the security of mechanism of financial products. In China, financial products are in the crucial stage between starting and maturity. Thus, more attention should be devoted to innovation and security on the mechanism, as to keep the amount growing in a high speed as well as to minimize the investing risk and increase profit stability.Aiming at the issues above, this paper firstly demonstrates the concept of banks’ financial products and the development in order to display the state of financial products and complete theoretical basis. Then, efforts will be devoted to researches on the detailed mechanism of current main financial products, discussing the features of different ones and the effects of related laws. Main methodologies will include induction, deduction and exampling in this paper. Thirdly, this paper intends to research on the risk and profit of the products with the combination mode of Markowits stock investment, especially the Structuring Financial Products—the master mechanism. Lastly, suggestions would be made towards the development of financial products with respect to other countries’ experience and domestic regulation system.