Financial engineering, including the design, development and implementation of innovative financial instruments and financial means, as well as creative solutions to financial problems.

Core elements:

In financial engineering, its core lies in developing and designing new financial products or businesses, and its essence lies in improving efficiency, including:

1. Create new financial instruments, such as creating the first zero coupon bond and the first swap contract;

2. Development and application of existing tools, such as applying futures trading to new fields and developing a large number of options and swaps;

3. Combine the existing financial tools and means with combinatorial decomposition technology to compound new financial products, such as forward swaps and futures options, and build a new financial structure.

Operating procedures:

The operation of financial engineering has standardized procedures: diagnosis-analysis-development-pricing-delivery, and the basic process is programmed.

Among them, from the feasibility analysis of the project, the determination of the product performance target, the optimal design of the scheme, the product development, the determination of the pricing model, the simulation test of the simulation, the application and feedback correction in small batches, to the sales and promotion in large batches, all links are closely and orderly. Most innovative new financial products have become a tool to creatively solve other related financial problems by using financial engineering, that is, the basic unit of combined products.