Research on liquidity risk management of securities companies under new financial market supervision environment

Last modified: October 26, 2019
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Project Title: Research on liquidity risk management of securities companies under new financial market supervision environment
Author: Mr. Li Wei
Advisor: Dr.Chai Thanichanun
Degree: Master of Business Administration
Major: International Master of Business Administration
Faculty: Graduate Schools
Academic year: 2017

Citation

Li, Wei. (2017). Research on liquidity risk management of securities companies under new financial market supervision environment. (Independent study, Master of Business Administration). Bangkok: Siam University.


Abstract

Because of the continuous innovation and development of China’s financial market in recent years, the domestic securities companies have become more and more comprehensive, diversified and complex in the scope of operation, business structure and product types. In June 2016, China Securities Regulatory Commission made clear the risk control index system at the core of net capital and liquidity and included two liquidity regulatory indicators of “liquidity coverage” and “net stable fund rate” into the four core indicators of risk control. The new regulation has raised liquidity regulation to the same importance as capital regulation. As a result, itis of great theoretical and practical significance to systematically study the liquidity risk management of domestic securities companies.

This paper first combs the relevant literature at home and abroad, then takes risk management as the theoretical basis, and then uses the method of combining normative research with case study to focus on liquidity risk management of domestic securities companies, current situation, characteristics and problems of liquidity risk management in domestic securities companies. Combined with theoretical thinking and related work experience, this paper also puts forward suggestions for improvement. Finally, S securities company is chosen as the object of individual practice research. On the basis of the above research, this paper draws the following conclusions: China’s securities companies must establish and consolidate the liquidity risk control system according to their own characteristics, and improve the level of liquidity risk management by using a variety of liquidity risk management tools and techniques while meeting the requirements of the liquidity risk index supervision, and make full preparation for the prevention of liquidity risk.

 

Keywords:  New regulation, Securities company, Liquidity risk.


Research on liquidity risk management of securities companies under new financial market supervision environment

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand

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