The Pricing Of Stock Linked Structured Financial Products In China

In recent years,the performance of stock market is common result that many hedge assets come into the bank financing product market.the number of bank financial products are straight up.The stock market is better in 2014, more and more banks choose to hook the stock index to design structured financial products, so investors can buy more products from the bank. Now our commercial bank design financial products from simple to complex, from single to diversity, making investors more choice. But at the same time, as China’s financial market development and interest rate process, making our commercial bank financial products in the aspects of design is facing a transformation test.Structured financial products are a combination of financial engineering and decomposition technique, which makes its design has a certain complexity. But at present the design of the product still has a lot of problems in China. This paper firstly analyzes the concept and characteristics of stock linked structured products. On this basis, according to the present situation of structured financial products, we put forward five major problems. The third part analyzes the major flow of the design of stock linked financial product.The fourth part focuses on the analysis of the market supply and demand situation.and the revenue and risk of stock linked financial product and risk management. The fifth part focuses on the analysis of two yuan option structured financial products to understand the specific pricing mechanism of this kind of product. The Monte Carlo simulation method is used to study the problem of product pricing. China Everbright Bank issue A+ program linked to the Shanghai and Shenzhen 300 index of the products, expounding the pricing of structured products for single target;Ping An Bank "poly treasure" structure of the class (the equity linked) financial products to elaborate on the pricing of Varied subject of structured products. Finally, carry on the simple appraisal and put forward some suggestions on the two products. But in determining the value of a product,investors should be based on the underlying assets price trend. Investors choose a suitable for their own products according to their risk preference. The last part of this paper makes a simple summary.