Study Of The Influencing Factors To The Yield Of RMB Financial Products In China’s Commericial Banks

This paper first gives a brief introduction of RMB financial products, then we analysis theaffect factors to the expected yield of RMB financial products including credit rating of theissuing bank, the period of financial products, capital preservation, income, investmentdirection, monetary policy, exchange rates, interest rates, inflation rates,capital markets, andeconomic development etc. In the part of empirical analyze, this paper choose the affect factorsabove to give a cross section to the expected yield of RMB financial products and almost all thefactors get expected sign except the level of bank credit has a positive correlation with the yieldwhich is in contrary with the initial assumptions. Besides, we also select the interest rate,inflation rate, stock market development, the level of economic development to give a timeseries regression to the product yield which reflects that the level of stock market developmentand economic development does not have a significant affect to the product yield while theinterest rate is one of the greatest influence factors. Finally, this paper give somerecommendations of policy from three aspects include investors, bank and the governmentbased on the problems of the current RMB financial products.