QS Bank Bond Investment Risk Management Research

2017 is a year when key developments took place in China's inter-bank bond market,and it is also an extraordinary year.In 2017,the amount of bond custody reached 64.57 trillion yuan,growing at the rate of 14.68%,increase 8.27 trillion yuan over the same period last year.The bonds custody in Shanghai Clearing House totaled 8.23 trillion yuan,accounting for 12.74% of stock market.The bonds custody in stock exchanges totaled 5.38 trillion yuan,accounting for 8.34% of stock market.The bonds custody in CDC totaled 50.96 trillion yuan,accounting for 78.92% of stock market.With the Fed raises interest rates and China promotes deleveraging and strict financial supervision,the growth rate of the bond settlement slows down,and the bond market settlement reached 1010.05 trillion yuan,with an growth rate 37.81%lower than that of same period last year,increase 4.86% over the past year.In 2017,with the Fed raising interest rates,the central bank also raised three times the convenience price for medium-term borrowing by 25 basis points throughout the year.Under the influence of financial risk prevention,strict supervision,and deleveraging,the interest rate of funds showed a upward trend,and the social financing cost also rose as a whole.The bond price index fell and the yield curvilinear rose.The bond market performance is closely related to China's macroeconomic trends and market economy.With continuous innovation and enrichment in bond products,and constant expansion of bond market,small and medium bank bond investment businesses will face many potential risks.The essay builds a theoretical basis for whole thesis by starting with the overview of China's bond market,the introduction of bond business and the major risks faced by the bond business.The thesis analyzes the development history and current status of the QS bond investment business by considering the QS Bank's own situation.By taking into account the bond market environment in China and common issues of China's small and medium-sized banks in bond investment,it also finds out some problems existing in the QS bond investment,including the problems of risk management system construction,matching of risk management and businessdevelopment,and lack of risk control professionals.In the end,in light of the current status of QS bank bond investment and the current situation of China's bond market under nowadays economic situation,the thesis conducted targeted research and analysis on the problems existing in the QS bank bond investment,proposes corresponding countermeasures and recommendations on this basis,and provides certain guidance to future development of the QS bank bond investment business,hence improves the risk management capabilities of the QS bond investment.This thesis aims at improving the risk management ability of small and medium banks and providing a good demonstration to China's small and medium bank bond business development by giving cases analysis.