The Research Of Market Risk In Chinese Internet Financial Products

The Internet finance is gradually changing the pattern of financial market in China since the Internet financial product enters the public view, represented by yuebao in 2013, With the constant development of the Internet financial services market, Internet financial product no longer takes up a small amount of idle fund, it is becoming an important means of managing money to investors. However, some products have showed up significantly downward trend,indicating that the market risk in Chinese Internet financial product gradually emerges. Therefore,it is significant to put forward a method to measure the market risk,discusse the influence factors of financial product yield and summarize measures to avoid market risk.The first part is the theory of market risk in Internet financial product at home and abroad, the second part deals with the concept,classification and benefits of the financial product. And the third part is the empirical test to calculate probable investment losses, using the historical simulation method and VARiance-coVARiance method based on GARCH to measure the VAR of the financial product market risk. In order to discuss effects of market risk factors on the financial product yields, the forth part establishes a time series regression model and the result shows that the Internet financial product yield is influenced by market risk factors, the influence of market interest rate is positive, exchange rate, commodity price and stock price have a negative impact on the yield of products. At last,this paper comes up with some pieces of advice about market risk prevention to Internet financial product accroding to the empirical test.