In The Belt and Road background, whether it is China or Southeast Asian countries on mutual cooperation and development in the future, reasonable and avoid the risk of investment are very important to both sides, in the process of cooperation, there may be policy, civil war and other factors, so it is very important to study the investment risk and trend, Since 90s, China has become one of the largest investment countries in Burma. It is the focus of investment in all aspects of agriculture and industry. First, it is based on good relations and the demand for future common development. Under the current international situation, resources and labor are the main causes of economic growth. The current Chinese economy, labor resources due to aging, policy control is serious, and Southeast Asian countries is a large population, rich in resources, in Belt and Road Initiative policy above, the state has adopted many policies to promote cooperation, and Southeast Asian countries in the current enterprise technology level is low, and the lack of large enterprises less. Lack of experience, and the development of a country needs consumption, investment, import and export, domestic demand can't keep up, consumption is not good, can only increase investment, increase net export to achieve better development, this is the common need of both sides, so relying on stable cooperation, this is the best development of China and Burma in the future, but also two The well-being of the people of the state in the future. Through good cooperation and good control of the risk, this will enable us to avoid the various risks that exist in the process of development, and thus make better and faster development. In addition, the cheap labor force is urgently needed by the current Chinese enterprises. The increase of labor cost is that many enterprises have lost the power of living, and this is better solved the question through cooperation. This article is devoted to the study of various risks and makes substantive policy recommendations on how to avoid these risks.
As the core of the financial system, financial institutions are playing a significant role in financial stability in the process of development; traditional analysis mainly discusses the institution’s revenue of assets. However, the current financial stability system pays more attention to financial institution risk behavior and operational efficiency; to solve the previous two issues, we propose the two-stage model. Firstly, we measure the dynamic financial institution’s risk behavior coefficient based on the volatility and return principle for different institutions. Secondly, according to the cross-efficiency principle, different financial institution operation efficiencies that assimilate risk behavior will be obtained, and the institution risk behavior valve is also given. Finally, we analyze the 31 banks listed in China to verify the validity and applicability of the two-stage model; the model has made a certain theoretical contribution to the financial institution analysis model, especially when we consider the risk behavior and multiple indexes. Therefore, the two-stage model that we built can help investors make a portfolio in banking enterprises; it also can help financial institutions evaluate their risk behavior for making an optimal decision and help government agencies to supervise banks based on their risk behavior.
Traditional portfolio selection models mainly obtain the optimized portfolio ratio by focusing on the prices of financial products. However, investors’ multiple preferences and risk appetites are also significant factors that should be taken into account. In consideration of these two factors simultaneously, we propose a double-hierarchy model in this paper. Specifically, the first hierarchy quantifies investors’ risk appetite based on a historical simulation method and probabilistic preference theory. This hierarchy can be utilized to describe investors’ variable risk appetites and ensure the obtained investment ratios meet investors’ immediate risk requirements. Then, using the cross-efficiency evaluation principle, the optimal investment ratios can be derived by fusing investors’ multiple preferences and risk appetites in the second hierarchy. Lastly, an illustrative example about evaluating the 10 largest capitalized stocks on the Shenzhen Stock Exchange is given to verify the feasibility and effectiveness of our newly proposed model. We make the theoretical contribution to improve the traditional portfolio selection model, especially considering investors’ subjective preferences and risk appetite. Moreover, the proposed model can be practical for assisting investors with their investment strategies in real life.
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