Investment Funds And Financial Reform

In 1991,the investment fund institution were introduced in China, and it came into a new stage of development in 1998. Stabling capital market is main objective that China introduced and developed the investment fund, and then promoting development of capital market. But in the process, operating behavior of China's investment fund produced aberrance in some degree. The aberrance not only reached anticipative objective, on the contrary pricked up no criterion of capital market. This made an problem become a discussing hotspot in academic circles, the problem is "How would China's investment fund be developed according to criterion." The modern investment fund institution has turned into an important part of entire financial system in developed country, specially, mutual fund in U.S. had replaced status of traditional commercial bank, and brought very active affection on evolvement and innovation of financial system and corporation institution. Why done a type of the financial institution that effectively function in developed country produced distortion when it was introduced to China? How should we turn the tables, and what action should we take to turn China's investment fund into an orbit of normative and effective development? That is to have very important significance in theory and practice that we seriously and systemically study these issue. Author systemically studied work mechanism of investment fund institution with research method of history analysis, criterion analysis and case analysis etc, and to be based upon these studies, a new truss about development of the investment fund institution is put forward.As a sort of new monetary and financial institution, the investment fund institution is result of economic development and financial deepening. Therefore, this thesis started with the analysis of its creation and evolution from history of money and finance. We discovered that money first is the original money to serve as the medium of exchange to satisfy need of commodity exchange by study on the origin and functional evolution of money. Along with economic development, money withal possessed function of value increment, this resulted in the birth of financial market that buy and sale money. Since, based on finance innovation, sorts of finance instrument with transaction of money are the derivative money. Sequentially to be knowable, investment fund firstly is a type of the derivative money, and the development of the modern investment fund institution too made it become fund money that it integrate the original money with the derivative money, and fund money is a new money pattern to gather medium with increment and savings with investment together. The financial institution always develop to adapt development of economic activity. Investment fund, which were created on base of security credit, gradually evolved into a financial institution from a investing tool. It is financial institution to more suit development of modern economy, because it characterizes own balance sheet, internal governance structures, as well as subdivision of investor and vitrification of work mechanism etc.Based on the historic analysis about investment, the concept of the investment fund institution was definitely put forward. And academic explanation and analysis were systemically done about this new type of financial institution. Thesis definitely differentiated different characteristic between fund investment and investment fund institution, unveiled essence of investment fund institution. Based on this, thesis explained internal governance structures of fund and its jural relationship between privy from the jurisprudence. a academic issue whether fund shareholder and fund sponsor would be as privy were analyzed, the governance structures under the principal-agent were explained. Thesis home analyzed its characteristic of marketable behavior as economic man. This article especially pointed out following, investment fund isn't provided with spontaneous tendency to stable capital market, but along with expansi...