Research On Financial Risk Of Zhejiang Province

Ever since the dawn of financial markets, the financial crisis as the "ghost" generally follows around. Especially in recent years, with the rapid development of China’s economy and society, the local financial situation is not optimistic due to some wrong decisions and the blindness of the market. Therefore, from the current view, how to prevent regional financial risks, to contain the crisis quickly when it erupts, to reduce its impact on the macro economy, has become a major issue to be solved in front of us.Zhejiang province is an important opening window to the outside world in the eastern part of our country,and tends to suffer easily in the financial risks conduction because of its macroeconomic structure-plenty of import and export enterprises. During US subprime mortgage crisis and the European debt crisis, import and export trade in Zhejiang province had suffered a huge blow, and seriously affected the healthy and stable development of economy in Zhejiang province. At the same time, Zhejiang province showed weak capacity in financial risk prevention. While the economy of Zhejiang province develops rapidly, the identification and measurement of macro-financial risks must be prepared effectively by using appropriate monitoring and management measures, in order to prevent and control the generation and transmission of financial risks, to ensure healthy development of the real economy, and to defend the fruits of economic development.The study follows the basic ideas of macro-financial engineering and macro-financial risk management, including definition of macro-financial risk, measurements and management of the risk and divides into three parts:firstly to introduce the related concept of macro-financial risks; secondly to identify and measure financial risks of main economic sectors in Zhejiang Province by using balance sheet and contingent way, while the results of the analysis show that contingent assets and liabilities is lower than the asset liability ratio, indicating that the market valuation of real enterprise risk is lower than the book value of realistic financial risks, and the overall risk of default relatively is controllable; and finally to identify risk factors to produce macro risk tables and put forward measures on macro-financial risks and preventive measures intentionally and strategically.