Paper Title :Financial Risk Analysis of Yu'E BAO Users' Assets

Author :Ruicai Li, Kanchana Chokethaworn

Article Citation :Ruicai Li ,Kanchana Chokethaworn , (2020 ) " Financial Risk Analysis of Yu'E BAO Users' Assets " , International Journal of Management and Applied Science (IJMAS) , pp. 7-12, Volume-6,Issue-8

Abstract : This study examines the financial risk of Yu'E Bao users' assets and measures the impact of Yu'E Bao's reform on the risk of Yu'E Bao users' assets. Using the rate of return of the currency fund invested by Yu'ebao and the average closing price of 41 companies of "Ant Financial Concept" stocks as the original data, the investment risk from the currency fund and the risk from Ant Financial. Applying the GARCH, TARCH, EGARCH, and PARCH models to measure data variance. According to the measurement results, TARCH and GARCH models are the best models for measuring two sets of data, respectively, combined with VaR (value at risk) model to accurately measure the risk degree of YuE Bao users' assets, and add dummy variables to measure the impact of the Yu'E Bao reform on the risk of Yu'E Bao users' assets. According to the measurement results, the Yu'E Bao reform has a negative impact on the risk of Yu'E Bao users' assets. This study finally measured the risk degree of Yu'E Bao users' assets and determined that Yu'E Bao's reforms reduced the risk of Yu'E Bao users' assets. Keywords - Yu'E Bao, Ant Financial, GARCH, TARCH, EGARCH, PARCH, VaR

Type : Research paper

Published : Volume-6,Issue-8

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