Research On The Custody Of China Securities Investment Fund

This article is about what are the solutions that can solve the problems currently existing in China's Securities Investment Fund Custody industry and suggestions on its development.By tracing back the history of Custody industry, looking at how it started and its business model, the article first reviews Custody's definition. Then, it turns to the development of China's Securities Investment Fund Custody industry, and gives a full description of its current situation with reliable statistics. Having made the current situation clear, the article goes further to find out what are the problems currently existing in the industry, and what makes these problems.It is found out development of the regulatory system, is behind the business development pace. Custodian is not empowered to be independent to supervise securities fund managing entities; and meanwhile Custodian is expected to improve supervision quality. Focusing on these three main problems, the article gives thorough analysis from both internal and external perspectives.To tackle these problems, understanding of Custody needs to be disseminated in a much wider range; and regulatory system wise, self-regulatory organizations need to be the core entities in the management system. Suggestions, such as starting trial of independent Custody, and setting up full-range supervision system, are put forward.Further more, in light of outlook of China's Securities Investment Fund Custody industry, which is going to be part of international market, it is made clear that development of the industry must be on the basis of more profitability, higher business standards, and supporting business development.