The Research On Restrictions And Countermeasures Of The Securities Investment Fund Development In China

Security invesement fund (SIF) is an investment orgnization that gather the dispersive fund ,by issuing SIF unit based on the principle of investing and shareing risks and profits together, to invest on securities for intended investment goal. It is also an investment instrument from investor' s point of view. SIF has advantage of lowering investment risk and trade cost and entering into more investment fields. So from 1970s, there has been a SIF boom both in European and American developed countries and in Asian developing countries, and SIF indeed has played an important role in the economic high-speed development. Although SIF appears in China much later, it has drawn great attention and has made great progress both in categories and in scale.Since China is still a developing country with a relative laggard security market, many problems happenned during the SIF developing course because of SIF internal limitations and inferior external environment. Plot of funds disclosed in 2000 indicates that SIF can not fully bring positive effect unless those problems are properly solved. This article starts with a brief introduction of SIF' s concept, characteristics, economic and social effect and SIF' s developing course in China. Then it penetrates with the restrictions on SIF development in China, using the methods of combination of practice and thoery analysis and case study. The restrictions include the limitations of fund governance structure, costodian' s supervision, shareholders' supervision, self-discipline of fund manager, relative laws and regulations, supervising system, security market and investment ideas etc. These restrictions came into being because of both SIF own mechanism and economic development conditions in China. SIF' s governance structure, supervising pattern, fee-decision mode and evaluation system in developed countries, such as USA, UK and Japan, are introduced and compared to get some experience helpful to Chinese SIF. Finally, according to Chinese realities, this article presents some countermeasures against the foresaid restrictions.In summary, this article has generally analysed the restrictions of SIF in China and presented countermeasures based on that.It provides some viewpoints on the system arrangment theories of SIF and it also gives some reference on making relative policies.