The Analysis On The Effect Factors Of Financial Products Expected Yield Of Commercial Bank Of China

With the rapid development of China’s economy and residents’ wealth increasing, the needsof financial plans for investors increase strongly. Financial products are popular withinvestors by virtue of its prudent investment style and higher yields, and become a majorfocus of competition among banks. Since the yield to maturity of financial products can’tbe predicted in advance, investors and commercial banks make product selection anddesign against the expected yield, so the analysis on the effect factors of financial productsexpected yield has a very important significance.This paper introduces the research on domestic and foreign personal financial servicesfirstly, and makes a detailed description of personal financial services and financialproducts secondly. Then analyses the effect factors of financial products expected yieldtheoretically from five aspects, and makes an empirical test on39,487financial productsdata. I come to the following conclusions: basic assets directly or indirectly affect thefinancial product revenue; different types of financial products are subject to differentmajor risk factors affecting; liquidity factors, bank credit rating and financial productsrevenue was negatively correlated; different types of alternative products have differentimpact on financial product revenue. Finally, puts forward corresponding measures andsuggestions: commercial banks should improve product development and pricing power,and investors need to choose products according to their own risk-income levels.The innovations of this paper are that put together basic assets, risk factors, liquidity factors,bank credit rating and alternative products, and analyze their influence on the expectedyield of financial products systematically and comprehensively; make an empirical test onall financial products issued by commercial banks and have a strong representation; revealthat the influence of alternative products on financial products expected yield depends onthe strength of the substitution effect and income effect.