FINANCIAL RISK MANAGEMENT IN EXCHANGE STOCK MARKETS

Abstract

The construction and expansion of the capital market is a key strategic decision made in the process of reform and opening up and in promoting the modernization of socialism. It is also an important part of exploring the construction of socialism with Chinese characteristics. Currently, listed companies play a crucial role in driving national economic growth. The Chinese capital market is undergoing a significant transformation and has entered a new phase of development. The overall market performance is stable and exhibits a gradually ascending trend. The market structure now predominantly consists of the Shanghai, Shenzhen, and Beijing stock exchanges. As the layers of the capital market continue to improve, both risks and opportunities coexist within the market. It requires the concerted effort of all market participants to implement principles of co-construction, co-governance, and sharing. There is a need to establish a comprehensive financial risk emergency response system that includes regulatory bodies, intermediary institutions, investors, and market participants, to conduct in-depth analysis and prevention of potential financial risks, thus effectively mitigating and resolving financial risks.