China's Commercial Banks Financial Products Revenue Factors

In recent years, with the constant innovation of financial products and thecontinuous expansion of Chinese banking financial business, commercial bankingfinancial products has been indispensible to domestic residents and a major part ofChinese professional collective investment instruments. As the promotion of financialinnovation, the changes in the investors’ appetite for risks rewarding，the economicand financial environment, what’s the trend of the banking financial products inrecent years? Besides, zero or even negative actual returns occurs to varieties offinancial products of several commercial banks, it causes not only economic losses toinvestors, but also reputation damage to the commercial banks, so which factors andhow do they affect the actual return? All these problems require us to explore andanalyze in depth.In this paper, we firstly summarize foreign classic theories and domestic latelyresearch on personal finance. On the basis of it, we introduce the concept of bankingfinancial business and categorize the banking financial products by different elements.Afterward, by analyzing and comparing the basic items of bank financial products ingreat detail, we get the trends between2009and2012. Subsequently, we focus on theanalyses of the factors which affect the yield to maturity of the banking financialproducts: the risk, the liquidity and the bank’s comprehensive financial ability. Basedon the theoretical analysis above, we apply positive analysis to the collected marketdata and also analyze the empirical results. Finally, in conclusion, on the foundationof the whole paper, we deliver series of recommendations for the commercial banksand the investors respectively.Through the research, we obtain the following conclusions:(1) Since2009, asthe macroeconomic environment has been undergoing profound changes, thesupervision of financial products business of commercial banks has been maturing,the RMB and foreign currency financial products has also been changed mainly in thefollowing aspects: the transition of the underlying assets, the maturity tending to beshorter and something like that;(2)The actual annual rate of return is positivecorrelated with the interest rate and maturity, while having negative correlation withunderlying assets risk, foreign currency and other investment mode except for trust and QDII; the principal non-guaranteed or the floating profit financial products havehigher actual annual rate of return than ones with the same other elements; furthermore, the comprehensive financial ability of the bank also affects significantly theactual annual rate.