Research On Self - Business Risk Of Chinese Securities Company

The risk management of the securities companies, which is an important part of China’s financial system, has attracted a lot of concern. Therefore, research on the risk management of proprietary trading of securities companies, for the effective management of the risks of securities companies, has important significance as well as for the development of China’s financial system. The purpose of this research is to study the risks of the securities companies and to identify the status of risk management of domestic securities companies. In order to promote the development of the risk management of China’s securities industry, we conclude the risk management suggestions from the view of the securities companiesThis paper firstly discovered the principles, characteristics of prioritary trading business and then analyzed the problems exposed to find out the present situation of domestic prioritary trading business. In the qualitative analysis, this paper analyzes the characteristics and risk factors of proprietary trading business from the internal perspective of securities companies. Through the case study, we find out risk factor, risk accumulation and risk exposure of the early bankrupt securities companies. The employment of the internal management of the company plays an important role in the risk management.In quantitative analysis, this paper studies the listed securities proprietary business from the stock market point of view. Proprietary trading business returns are calculated through its quarterly financial statements. This paper finally conclude that the financial innovation and market investment tools will be helpful for the risk management of proprietary trading business. Finally, based on the previous analysis, this paper puts forward the suggestions to risk management of proprietary trading of securities companies.