On the Development and Application of Financial Engineering

Since 1970s, with the great changes in the business of corporate finance,commercial bank and investment setup and the rapid development of IT,a new academic concept has emerged——Financial Engineering.The explosive development of technology of risk management,such as investment fund,financial derivative tools and so on, has caused profound changes in financial industry, which transfer the financial science from the conventional descriptive and analytic phase to engineering phase.This financial creativity has produced economic and social benefits on a large scale.This paper aims at analyzing the concept of financial engineering and its agent of production and development and studies the major difficulties encountered by the financial field of our country as well as how to develop the financial engineering of our country and improve the financial efficiency.