Overview of financial infrastructure

A definition of financial markets, elements, functions.
1. Definition of financial markets
in financial markets: financial intermediation is a place where centralized distribution and lending, by contrast money supply and money demand formation of prices in this market.
Simply put: both supply and demand of funds carried out various places all kinds of trouble Monetary Monetary fund activities by means of financial instruments.
2. The element of the financial market
(1). Trading in financial markets target
financial markets trading partners are monetary funds. The difference is that with commodity markets commodity ownership and use rights transfer colleagues, and the financial markets showed only transfer Monetary funds use rights.
. (2) financial market transaction subjects: include any individuals, businesses, governments and financial institutions involved in the transaction
(3) trading tools: the main financial instruments involved in the transaction, financial instruments are divided into direct and indirect financial instruments
3. financial markets function
(1). raising money is the most basic of financial markets function.
. (2) macroeconomic adjustment function
directly regulate functions: financial markets on the one hand connected to the investors, on the other hand to finance the business. Financial markets through its unique mechanism of capital formation and guide the rational allocation of resources first on micro-economic impact wrap the body, and thus the formation of a self-regulatory mechanism for the macroeconomy.
Indirect regulation: the existence and development of financial markets, the government created the conditions for the implementation of indirect control of macroeconomic activity, with the planned economic system different from the government's macroeconomic management is not directly intervene in their business, but mainly through monetary policy directly affect the behavior of enterprises and fiscal policy.
(3) The information feedback function
of financial markets has always been known as the national economy "barometer", the national economy is the signaling system workers, a lot of economic and social information can be reflected in the financial markets.
Business conditions and prospects for the development of enterprises reflect, reflect changes in the world economy.
(4) industrial structure optimization
The degree of contrast, the risk of bonds issued by inefficient enterprises is relatively high, raider hand of welcome; the financial markets, bonds issued by enterprises with good returns are usually more welcomed by investors, lower interest rate and thus release the small cost of financing , the issue of interest rates so high, thin cost increases.
II. Classification of financial markets
1. Press the financial transactions of the period divided into money market and capital market,
money market short-term financial instruments exchange market. Including short-term deposit and lending market, the interbank market, discount market and other
capital markets is a long-term financial instruments exchange market. Including long-term savings and loan market, the stock market and so on.
2. Press the delivery period can be divided into the spot market and the futures market,
spot market after the transaction volume on the spot or within a few days that is handling the liquidation settlement, money, goods two clear market
futures market trading after the transaction is stipulated in the contract price, quantity and deadlines for delivery liquidation market.
3. Press the political geography of the region can be divided into domestic financial markets and international financial markets,
the scope of activities is limited to the domestic financial market within the territory of that
range the international financial market activity beyond national borders, can be the entire world, it can be a region
4. Trading varieties can be divided into the stock market, bond market, fund market, repo market, foreign exchange market, gold market, insurance market and so
three financial institutions and their constitution.
1. Definition: Those who specialize in various financial activities of the organization, both said financial institutions
2. compared with the general business, the special nature of financial institutions, mainly in:
(1) specific business objects and business content. Financial institutions operating target of monetary funds is such a special commodity, content management is the payment of money, borrowing and monetary funds and a variety of sports-related or associated with it a variety of financial services.
(2) Special business relationship with business principles. Between financial institutions and customers are mainly the relationship between money lending or investment funds.
(3) Impact of special operational risks. Risk financial institutions mainly credit risk, run the risk, interest rate risk, exchange rate risk.
3. central bank - the People's Bank of China
to develop and implement monetary policy under the leadership of the State Council on the implementation of financial sector supervision and management of state organs. Currency issuing bank, banks, government banks banks.
4. The policy banks
1. The government invested in the bank, according to government decision-making and policy intentions specializing in financial services
2. China Development Bank: to raise funds and medium-sized guide to the basic national infrastructure, basic industries and pillar set construction and technical transformation projects and supporting projects such as policy loans.
3. Import and Export Bank of China: the implementation of national industrial policy and foreign trade policy, to provide policy financial support for the expansion of exports of electromechanical products and complete sets of equipment and other capital goods.
4. Agricultural Development Bank of China: raising agricultural credit policy, agricultural policy set by the state to assume financial services.
The state-owned commercial banks: in a dominant position have a state-controlled commercial banks / ICBC, China Construction Bank, Bank of China, Agricultural Bank of China
6. Other commercial banks: Bank of Communications, China Merchants Bank, CITIC Bank, Minsheng Bank,
7. Rural and urban credit cooperatives: rural credit cooperatives: rural collective financial organizations
honesty Credit: urban collective financial organizations
5. Insurance company
1. by handling a large number of retirement income insurance funds, will be used to pay claims outside, but also for other funds by the State Council.
2. property insurance business.
3. life insurance business.
6. foreign financial institutions in China
1. representative offices of foreign financial institutions in China.
2. The business branches of foreign financial institutions in China
7. Other non-bank financial institutions
1. Trust
2. securities companies
3. fund companies
4. Financial companies
5. Financial leasing companies
6. postal savings institutions
8. oversight bodies
1. The China Banking Regulatory Commission
2. China Securities Regulatory Commission
3. China Insurance Regulatory Commission
9. trustee - commercial banks and securities firms
responsibilities 1. the custodian of
custody of assets, liquidation of assets, asset accounting: accounting, net asset value in line with the review, investment operations supervision.
2. the custodian role
to prevent the misappropriation of property, ensure property safety
oversight investment managers of investment operations to protect the rights and interests of holders of
the asset accounting review, prevent errors and ensure accurate authenticity
3. institutional settings
Marketing
liquidation department
accounting department
supervision of the Ministry of
system development and maintenance of
internal risk control unit
4. technical systems
accounting accounting, fund settlement, supervision and other major investment activities through technical system to complete
configuring the system complete, independent
strict management system, account numbers, passwords, and other disaster off
the safe operation
5. asset safekeeping
safety assurance assets
disposition of assets according to the law
strictly commercial secrets
assume assets liability for losses
account management assets: bank accounts, settlement provisions Account, securities account
management of important documents
6. liquidation of assets
exchange-traded liquidation of assets
National Bank Gian market transaction settlement funds
of other fund clearing OTC
7. asset accounting
review of accounting
positions review
review net
review of the financial statements of
expenses and income distribution review
performance review data
supervision 8. investment operations
investment range supervision and
oversight of investments
supervise the proportion of investment financing
prohibited conduct supervision
to participate in interbank trading in the interbank market supervision
of manager selection supervision of bank deposits
9. handling
telephone prompt
written warning
written reports
of periodic reports
10. Manager - fund
1. responsibilities manager
fund raising and sale of
the Fund's investment management
fund operator service
2. the main business
of securities investment fund business
account management services
investment advisory services
social security fund management
enterprise annuity management
QDII business
3. manager - insurance asset management company
is dedicated management of insurance funds of financial institutions. The main business is to accept the insurance company entrusted insurance funds, the goal is an insurance-based
gold and increase the value. Insurance asset management companies generally have the insurance company or insurance holding company initiated the establishment of the East.
4. Manager - Trust
is a trustee of the identity, generation financial management of financial institutions
Offer can trust securities investment trust products, the use of law as the Trust Act
11. The definition of financial instruments
1. Financial instruments: credit generating activities can prove financial transaction amount, term, writing prices. It is for bond
obligations and rights of both the epitome of debt assumed by both legally binding effect.
2. Characteristics of financial instruments
reimbursable: a variety of financial instruments at issue generally have different reimbursable.
Liquidity: This refers to the ability of financial analysis of production when converted into the currency, said the price will not suffer losses. In addition to a monetary Awei
Security: the risk that whether to invest in financial instruments will suffer a loss of principal
profitability: it is regular or irregular financial instruments can bring benefits to the holders of characteristics
3. Classification of financial instruments
by Term Category: money market instruments: Short-term debt | repurchase agreements | negotiable certificates of deposit large amounts
of capital market financial instruments: stocks | bonds | corporate bonds | Treasury | Fund
1. Short-term debt: repayment period to one year or less bond short-term bonds. Issuers of short-term debt are mainly businesses and
governments.
2. repurchase agreements: Securities shot at the same time, the agreement with the securities of buyers, according to the original agreed purchase price after a certain period of
exchange by selling securities in order to gain a trade-behavior immediately available funds.
3. Large negotiable certificates of deposit: a proof issued by a bank or savings institution. It shows a sum of specific amounts of
funds have been deposited in the agency issuing certificates of deposit, he was from an ordinary bank deposits evolved. Negotiable certificates of deposit can
get in before the seizure of the money market maturity, thus greatly improving the cash flow level certificates of deposit holders.
4. Treasury: Government in order to raise funds issued to investors, promising to pay interest and principal repayments of debt in a certain period of
credentials.
5. Corporate Bonds: The Company issued in accordance with legal procedures, agreed to repay principal and interest in a certain period.
6. Corporate Bonds: only in the territory of the People's Republic of fire issued in accordance with legal procedures, the agreed debt service within a certain time limit for
securities.
7. Stocks: a securities are issued certificates to prove Corporation shareholders held shares, he, as a
Zhong document of title, and has a certain format.
8. Fund: full name of the securities investment funds, the funds raised through the public offering of fund shares, managed by the fund custodian, by the base
fund management and use of funds, the interests of holders of fund shares, the way to carry out the method of portfolio performed a portfolio of
species of interest Oh sharing, collective investment risk way ticket.