Study On Domestic Institute Investment On Oversea Security Market

China's growing foreign reserves has brought the domestic oversea investment institutes growing requirements for oversea security market investment. Global financial crisis and fluctuating international financial market has increased the domestic oversea investment institute's oversea investment risk as well as the difficulty of oversea investment. Judging from the investing ability and current status, domestic investment institutes should be eager to improve their ability on portfolio management, investment target selection, risk control and investment strategy research. The existing research on this topic is few in China.Oversea security market investment for domestic institute is a systematic project. It has a serial of problems to be solved, including country selection, portfolio selection, investment strategy on specific market and risk control. In case of the fact that Chinese foreign reserve is mainly composed by US dollar, the first consideration of domestic institute is portfolio selection because it offers the main direction of investment. Then they should consider of deepening into the specific market. They have to study on the investment method, investment strategy and risk control base on the market's character to reach the exercisable level. This dissertation focuses on the two main problems that domestic oversea investment institutes are facing. The first is security portfolio selection. The second is investment method, strategy and management.The dissertation first does some researches on the first problem. Based on the retrospection and sorting of the existing research on security investment portfolio, we choose to make our own Chinese situation fitted model by amending and expanding the classical portfolio selection model. This amending is mainly aiming at the higher risk aversion restriction on the domestic investment institutes. This restriction emphasizes on the aversion of downside risk on portfolio. We hereby use mathematic proof to verify the validity of the model and its Second Stochastic Domination character. Next we make empirical study on the model. With real security market data, we use both the classical model and our amended model to output their optimal portfolios. We then observe the performances of the portfolios in the next period of time to judge their effectiveness and to compare. The empirical study shows that our model is effective in the real market and in some instances, better than the classical model.After developing the portfolio selection model, the dissertation focuses on the study of oversea high rating credit bond, which in a specific field in security investment. To let the domestic oversea investment institutes acquaint with this field, we start with the background analysis. This analysis introduces all aspects of oversea high rating credit bond investment, including the investor composition, investment channel, clearing method, etc. Then we study on some crucial problem on oversea high rating credit bond investment. The problems include investment fund flow study, credit bond yield impaction factor study, economic cycle's impact on bond yield study, valuation and rating study and risk and strategy study. These serial of studies, along with the background analysis, basically include the required information and tools on oversea high rating credit bond investment. Last but not least, we do a special study on the high rating credit bonds issued by domestic issuers. These bonds have special character to domestic investment institutes. So some studies on investment risks and strategy on this kind of bonds are done.