Research On The Impact Of The Complexity Of Structured Financial Products On The Degree Of Income Realization

In recent years,with the rapid development of the financial market,investors are no longer satisfied with low-yield financial products,and commercial Banks' structured financial products should be produced as required,and the product structure is constantly enriched and diversified.With the official implementation of the guidance on regulating the asset management business of financial institutions and the supervision and management measures for financial management business of commercial Banks,financial management supervision of Banks has become stricter,and Banks are not allowed to promise to guarantee capital and earnings.Faced with the still soaring investment demand,the issuance scale of financial products is still expanding.However,the design of structured financial products is complex,and investors are prone to cognitive bias and make unreasonable decisions.The research on the complexity of such products can help investors understand the income structure of structured wealth management products and make wise choices.In this paper,Bank of East Asia,which has strong financial management ability and rich income structure of financial products,is selected as the sample bank,and the complexity of structured financial products is quantitatively measured by three indicators,namely yield structure discount point,number of scenarios and description length.Focusing on the Bank of East Asia during the second half of 2017 to 2018 issued or expired structured financial products,using the tendency to Propensity Score Matching model to case the benefits and the complexity of the product realization degree of the relationship between the empirical research,found that the Bank of East Asia's complex structured financial products than a simple structured financial products yields realization degree is higher,and significant under 1% level.The average processing effect is estimated by the nearest neighbor matching method,the radius matching method and the kernel matching method.And it is found that some factors such as risk level,multi-asset portfolio and competition will lead to higher income realization of complex group of case product than that of simple group.Finally,based on theoretical analysis and empirical analysis,this paper drawsconclusions and puts forward relevant suggestions from the perspectives of investors,commercial Banks and regulators.