Study On SCP Of China's Securities Investment Fund Industry

Since the establishment of China's securities investment fund industry, as a breakdown of the capital market industry, it maintained a relatively more high-speed development than other financial industries in the past 10 years. After hurricane process of growing up, the securities investment fund industry has grown into the most important Institutional investor of China's capital market and the mainstay of China's stock market. The rapid development of the industry is the miniature of the rapid rise of Chinese economy and Chinese society, while the former will undoubtedly have an obvious impact on the latter.In this paper, the theory of industrial organization is taken as the point of view. China's fund industry's market structure, market behavior and market performance and their mutual influence were studied based on the SCP framework. The research references the historical comparation and international experience, uses quantitative and qualitative methods in large-scale. Recalling the basic theory of industrial organization, the history and status of Chinese securities investment fund industry ,this article takes market Share and market concentration index to reference to the experience of United States to analyze China's securities investment fund industry's market structure. Taking marketing, investment and mergers and acquisitions as the three dimensions, the article analyzed behaviors of China's securities investment fund management company; using multiple indicators to do international comparisons, the article has studied performance situation of China's securities investment fund industry.Although the degree of market concentration has experienced a significant decline, China's securities investment fund industry still maintains relatively high market concentration campared with mature market. The fund management company's marketing and investment behavior, in the course of development of the industry, experienced a maturing process.The increasingly fierce industry competition makes the marketing behavior goes from product and selling stage to brand marketing stage. After repeated tests of the market, the investment behavior has gradually gone to the value investment firmly. In addition, the first case of industry mergers and acquisitions may mark the emergence of a new trend. After analysis of the longitudinal and international comparisons, China's securities investment fund industry's performance situation still has great room to be promoted.In this paper, the results of empirical analysis shows that classical theory of industrial organization is effectively weak for China's securities investment fund industry, so, the industry is still in a serious tendency to rely on the environment. Therefore, the right road of the development of this industry is to improve the environment to promote the structural optimization, driven performance improvement. On this basis, this article Puts forward six areas of policy recommendations.