Selection The Underlying Of Structure Investment Product When Economy Slow Down

After a continually and fast growth in the last decade, china economy slowed down in 2013 with large fluctuation on assests price.In such moment, this study is aim to target the right financial tool together with its underline assets to provide higher risk adjusted return. The analylsis starts from the comparison of the structure of financial tools and then using the business cycle theory together with the free cash flow theory to build investment portfolio among the thousands A share in China stock market.The study proved those share in small Cap. with healthy free cash follow as well as the industry in the right business cycle perform well in statistical of the sample group. Using the structure fund, such underline assets may reduce the potential risk of the investors in such slowdown environments.