Case Analysis Of "Delibao·Extreme" Series Of Financial Products Loss

In recent years, China’s stock market has been in a slump which makes people donot have good investment opportunities, while low interest rates and domestic inflationpressures, people are not willing to get low-income with deposit. In order to meet theinvestment needs of the Chinese people, the bank’s financial products emerged. Financialproducts have the advantage of higher income and the relatively small risk, favored bythe majority of investors when emerged. With development of financial innovation andtechnology, the financial products develop rapidly. Species become large, productoperation mechanism become complex and expected revenue become higher. With therapid development of financial products, financial products also exposed some problemsIn2012and2013,the “Delibao·Extreme” series of financial products have slipped intored, which bring investors loses. Large losses of “Delibao·Extreme” financial productswill inevitably affect the reputation. If do not apple some measures it will inevitablyBank and even adversely affect the banking industry. Moreover, China’s financial marketis dominated by banks, the healthy development of the banking has a positive affect onfinancial stability and economic growth. Deal with a series of problems of financialproducts leads to the loss, not only protect the investors, but also have a positive impacton the healthy operation of banks and other financial institutions. It is vital to ourcountry’s financial sector stability and development. In this paper, the analyses are basison the financial products and use case analysis method to study the problem. Throughanalysis the product operation mechanism and loss situation in2012-2013,the paperanalysis the reasons of loss both from internal and external, reveals the problems offinancial products and gives recommendations to profitability perspective in the aspect ofprotect investors and financial institutions. At last, the paper give some reference andinspiration to financial products.