The Research On The Introduction Of SRI Mechanism Into China's Capital Market

"Different investment models could bring different results to human being. The now survival environment is the result of investment models our fathers adopted. And the one we choose will decide the world of tomorrow", someone has ever said before. Socially responsible investment (SRI) is just taking an attitude of responsibility to invest. It is a special kind of investment model which is based on the criteria of environment, society, and finance. Financial return is not the only goal of investing in terms of SRI. Except that, social improvement, economic development, peace, environmental protection and ecology equilibrium are also falling in the horizon of SRI. This kind of multi-task investment offers an enlightening attitude of mind to transfer the old economic developing model that has placed so much emphasis on economic development partially to a new one, which will balance the development of environment and society with that of economy harmoniously and sustianble.First this paper tells the difference between SRI and traditional investments in terms of definition, traces its history in capital market of developed countries, and specifies the strategies which are adopted by SRI. From the angle of behavioral finance, it investigates the specialty of SRI investors'utility function, and structures a fuzzy utility maximum model under the condition that SRI investors are fuzzy at the investing goal and limitation. Next this paper views several countries and regions where SRI has developed prosperously, including America, Canada, England, Continent of Europe, Australia, and emerging markets in Asia. It finds the motivation behind the fact that SRI has been moving into the mainstream of capital markets in recent ten years. Then this paper discusses the social responsibility from the point of philosophy, and states the investment's responsibility and the companies'. This part is referred to the theory of stakeholder in management and the theory of behavioral finance. There have been several shortcomings in China's capital market with respect to social responsibility. And this paper analyses the advantageous conditions on introducing SRI mechanism into China's capital market now. It uses typical CAPM model to measures the performance of first SRI fund in China. And facing the establishment of the first SRI index in China, this paper collects sample companies'data on return, then measures the reflect of China's capital market to the environmental factor, which is non-financial. At last, this paper provides constructive suggestions about the development of SRI in China's capital market from different viewpoint of subjects concerned, including the market regulators, listed companies, professional institutions, financial institutions and investors. The economy globalization brings the challenge of socially responsibility. The sustainability of economic development needs to make the socially responsible investment into force. Sustainable development is the only way for China, and the socially responsible investment is the important mechanism to realize the sustainable development. If China wants to be integrated into the international capital market, it has to take great effort for China to fulfill socially responsible investment not just knowing this conception well.