Research on Controlling the Systematic Risk of China Securities Market

By drawing on international research results, the paper take an empirical method to analyze the risk characteristics of bonds, stocks, futures and other markets in China when the economy has gone through recovery, overheat, stagflation, reflation. At the same time, the paper analyzes empirically the risk characteristics of basic materials, consumer staples, financials and etc. Afterwards, the paper obtains the risk-benefit ratio of various financial assets as well as different industries in different economical circles through financial engineering methodology. On this basis, the paper makes recommendations on how to control the systematic risk in Chinese financial markets.