Research On The Evaluation Of The Investment Income Of Structured Deposits Of Bank Of China And Its Influencing Factors

The emergence of structured deposits in China in 2002 has injected fresh blood into China's commercial bank wealth management product market and promoted the innovation of China's financial products.The introduction of new rules for asset management and wealth management in 2018 indicates that rigid payment products will soon exit the stage of history.With the advantages of less risk and higher yield,structured deposits have become a substitute for rigid payment products and ushered in a golden period of their own development.Commercial banks are facing the dilemma of losing their rigid payment products,such as a storage weapon and the increasing competitiveness of Internet financial products,and the pressure on banking is increasing.Structured deposits,as financial innovation financial products of commercial banks,are very powerful tools for absorbing deposits.Therefore,how commercial banks issue high-yield structured deposits to absorb deposits is an issue that needs urgent solution.China is about to enter a well-off society in an all-round way.The increase of residents' income and the enhancement of financial management concepts have continuously increased the demand for purchasing structural deposits.Yield is the key factor for investors to choose wealth management products,so investors' evaluation of the investment income of structured deposits also has important research significance.This article selects the structured deposits of the Bank of China as the research object,and studies the investment income evaluation and the influencing factors of the structured deposits of the Bank of China.The article is divided into six sections,First,the research results of structured deposits in terms of pricing,investment returns,risks and classifications are reviewed,and the research ideas and methods of this article are introduced.Second,expound related theories and basic concepts.Third,the development status of China's overall structural deposits and the structured deposits of the Bank of China are analyzed separately.Fourth,the Monte Carlo simulation method is used to explain the calculation process of the expected rate of return on the structured deposits of the Bank of China,and it is compared with the rate of return of other products to obtain the evaluation results.Fifth,conduct an empirical analysis of the factors that affect the return on structured deposits.Sixth,summarize the research conclusions and propose relevant countermeasures from the perspective of Bank of China and investors.The following conclusions can be drawn through empirical analysis:(1)The yield on structured deposits of the Bank of China is higher than the government bond rate and the stock market yield,but lower than the yields of structural deposits of other banks,but lower than those of other banks.Compared with treasury bonds and the stock market,structured deposits are a good investment option,but compared with other banks' structured deposits,Chinese banks have lower yields on structured deposits and are less competitive.(2)The expected rate of return calculated using the Monte Carlo simulation method can better predict the actual return of the structured deposits of Chinese banks.The probability of achieving the highest return is expected to be 50.4%,the probability of realization is low,and the Bank of China's risk management capability is weak.(3)The six factors,such as the issuing bank,the target,and the currency,have a significant impact on the rate of return.Among them,the target,currency,and linked target are the more important factors.Issuing Renminbi and equity-linked structured deposits to institutions can increase the yield on structured deposits.(4)The structural deposits of Chinese banks have the problems of poor liquidity,few types,simple design,weak risk management capabilities,and low returns.In response to the problems,the Bank of China put forward countermeasures in product design,risk management,and professional personnel training.Advice to investors on product selection,product risk,and self-learning.