Research On Market Risk Management Of Structured Financial Products Of Commercial Banks In China

Structural financial products were first born in the United States,because their high profitability satisfied the investors' pursuit of return,and the flexible diversity of products satisfied the diversity of investors' risk preference,it has become the most rapid development and one of the most promising businessesin the world today.But the risk goes line in line with the rapid growth of structured wealth management products that most of the products that reveal unexpected returns in 2016 are structured financial products.So investors,banks and regulators have to value and reassess the risks of wealth management products.Market risk is the biggest risk faced by structured financial products,so it is necessary to study its market risk management under current conditions.From the point of view of commercial banks,this paper attempts to put forward reasonable suggestions and solutions to the market risk management of structured financial products in our country by combining theory and practice.This pap er first introduces the theory of market risk of structured financial products and its history,then analyzes the factors that influences the market risks,which reveals that the factors include interest rate risk,exchange rate risk and stock price risk and commodity price.Then,main problems in market risk management are found,combined with the current situation of market risk management of structur ed financial products in China.This article uses the advanced measurement tool VaR to carry on the case analysis to the article,it selects an exchange rate pegged structured financial management product issued by Agricultural Bank of China in 201 7.The average VaR value and absolute VaR value of financial products are calculated by using historical simulation method and Monte Carlo simulation method,and the VaR values calculated by the two methods are compared and analyzed.The results show that VaR has a certain reference value for the market risk management of structured financial products of commercial banks in China.