ABSTRACT
As everyone knows, China’s bank loans have grown at a very fast rate this year. After studying these new products, if we are able to take advantage of them they may well help us reduce the risk of these loans and enable more sound economic growth. The astonishing advances in science and technology are creating a whole new context for finance, but meanwhile the financial condition of bank customers is also changing much faster than it did before. Financial institutions are exposed to much greater risk. Managing risk, and dealing with the whole issue of incentive mechanisms, is something that now deserves our close attention.
