Study On The Steady Development Of Open-ended Fund In China

Open-ended Fund (Mutual Fund), as a financial institutional arrangement of funds-collection and investment-decentralization, is an important financial innovation. Open-ended Fund serve the investors for the different term and amount investment selections by its lower initial investment size limitation and convenient buy-application&sell-application mechanism, it furthest collects the social extra funds and boosts the transformation of diposits to investments. Meanwhile, by its professional investment measures, mature investment idea and the assets portfolio strategy, Open-ended Fund could bring the middle&small size investors fortunes and help them avoid huge risks by largely. In the mature foreign markets, Open-ended Fund has become a very important part of financial market. Even more, Open-ended Fund has exceeded the traditional banks, insurance companies by assets in some developed countries, Open-ended Fund industry is a powerful part which can't be ignored in financial industry. Compared with the long history that about one hundred years of foreign Open-ended Fund industry, China has just entered the 7th year of development. Although the Open-ended Fund industry in China has experienced a "unusual" fast development phrase by the supports of related regulatory department, and its assets management size, amount of Funds management companies, amount of Open-ended Fund also had a striking increase. But we should recognize soberly that Open-ended Fund as an financial institutional arrangement, its development level should also be in line with the objective discipline of economics and finance. Open-ended Fund development can't decouple with the economics development level, financial market mature degree and the related laws. It is unwise to ignore the inherent disciplines of the development of Open-ended Fund, and it may cause catastrophe of our financial market if we only pursue the quantity-style increase. For instance, three years ago, china's securities market, which suffered that many listed-companies and securities companies bankruptcy, mass state-owned assets loss and a huge amount of investors suffered great loss, because of the uncanonical development of securities industry. In addition, the laggard construction of legal infrastructure and efficiency-lack in supervision measures is another main reason. In the 2006 and 2007 china's hot bull-market, many Funds management companies and Open-ended Fund industry gained a unprecedented income, the Funds industry entered a golden stage. But, we should keep in our mind that the Funds industry still face much essential system problems, these problems may be covered under the bloom of bull-market, and it's impossible to solve these problems just by a times of bull-market. So, we need to insist do in-depth researches about how to develop the Open-ended Fund industry steadily. This paper would aim at above questions to spread study, my study including: I .Chapter one, introduction, set forth the study background, study significance and means of study.II .Chapter two, mainly about the theory infrastructure introduction. It includes modern investment theory, property right theory and financial intermediaries development theory.III .Chapter three, make a review of China' Open-ended Fund development history. At firstly, review the Open-ended Fund development in the developed countries. secondly, introduce the development procedure in china and tick off the achievements of China's Open-ended Fund industry. At last, make a compared analysis between the China and U.S.A Open-ended Fund industry.IV .Chapter four, introduce the current actuality of China's Open-ended Fund industry.V .Chapter five, make an emphasis on the analysis of problems which Open-ended Fund counter on the development phrase, and take an in-depth study on the causes, forms of problems. It provides clear clues for the further study.VI .Chapter six, this chapter contraposes the problems referred in chapter five, puts forward detailed solution plan, it emphasizes on the viewpoint that the Open-ended Fund industry develops harmonizely with the whole financial market.Through above studies, the author gives the following suggestions:1. To enhance the Open-ended Fund inner governance. The main measures include improving the funds-holders convention system, continuing to construct the independent directors system and building up efficient stimulation system.2. To promote the Open-ended Fund exterior governance. The main measures include enhancing the information disclosure system and recononition the functions of independent agency institutions in Funds governance.3. To improve the Open-ended Fund develops harmonizely with the whole financial market. The detailed measures include developing Bonds market, promoting Bond Open-ended Fund development; through financial innovation, provide more risk-avoid measures, for example, the stock-index futures to help Open-ended Fund avoid or reduce investment risk; open the pension funds and retirement funds to the Open-ended Fund, provide more policies to support the industry development.