Research On Liquidity Risk Management Of Monetary Fund Under The Backdrop Of Strict Regulatory Environment

Monetary fund has become an essential part of China's financial market,which affects the stability and development of the financial market.However,the fast growth of monetary fund leads to relatively high potential risks among which the liquidity risk is closely related to the capital chain of the currency market.Frequent liquidity risk events have become the major factor resulting in monetary fund risk.To fully utilize the positive effect of monetary fund on promoting sound development of China's currency market,regulatory authorities have attached great importance to the problem and enacted many relevant policies.In the face of new regulatory environment,monetary fund should strengthen its ability to manage liquidity risks.Based on the study of the development and supervision history of the money fund,through analyzing the supervisory regulations' influence on monetary fund in five respects,this thesis points out that liquidity risk is the major risk facing money fund now,while the establishment of the liquidity risk management system for money fund will be an effective solution.This system consists of two parts,namely,prejudgment and in-process management.The very study selects redemption rate of 233 representative money funds(2015-2017)as the explained variable;taking the oriented analysis of potential impacts on money fund's redemption rate as explanatory variables,with focus on 4 aspects,namely,monetary policy,the macro economy,capital and relevant profitability of fix-term financial assets;applying the results of multiple linear regression analysis to come to the conclusion that there are 6 factors identified as prejudgment which would generate impacts on money fund's liquidity risk level.Furthermore,after absorbing the latest requirements from supervision,the study provides solution of establishing money fund internal risk management system's in-process management part,after comprehensively taking 5 aspects into consideration.The innovation of the study can be concluded as follows: First of all,the latest supervision regulations are referred for the first time.Through in-depth analysis of the key articles,it is concluded that it will be more difficult to manage liquidity risk of monetary fund.Secondly,based on the standpoint of regulators of money fund,the study regards the redemption rate as a quantitative indicator for liquidity risk,which is in accordance with the actual situation of the operation and management of the fund.Thirdly,taking liquidity risk as the research object would make the risk management system more target-oriented.However,as the data about net assets of monetary fund in China are revealed quarterly,the study cannot reach an accurate conclusion.But,as people's demand for the revelation of the information of fund products stepped up,the weaknesses in the conclusion made by the study can be overcame.