Case Study On Structured Deposits Of China Merchants Bank

With the implementation of the "new rules on asset management" in 2018,rigid payment has been broken.The traditional capital protected financial products of commercial banks no longer meet the regulatory requirements and gradually withdraw from the market,narrowing the channels for commercial banks to attract deposits.As a relatively novel financial product,structured deposits are in line with the needs of some investors who want high returns without losing principal,because they have the ability to protect principal and gain high returns.However,with the continuous development of structured deposits,this product also presents many problems.This paper takes the Zhiying series structured deposits of China’s top joint-stock bank as the research object,and briefly introduces the four structured deposit products of China Merchants Bank and its Zhiying series.Taking Zhiying Call automatic redemption 364 D structured deposit product as an example,the income and pricing of this product are analyzed by Monte Carlo simulation method,and the risk of this product is analyzed by Va R and sensitivity analysis method.The analysis results show that the Zhiying call automatic redemption 364 D structured deposit product studied in this paper is reasonable in terms of income structure setting and risk,reflecting the logic of the coexistence of financial risk and income.Income is proportional to risk,income is at the cost of risk,and risk is compensated by income.Investors should pay attention to the risks existing in the product when choosing such products.Decide whether to buy such products according to their own income needs and risk preferences.When pricing the product,it is found that the product is issued at a discount and the discount rate is high.The issuer can optimize the setting of various parameters of the product according to this,so as to reduce the discount rate and the debt cost of the issuer.