Development Status And Prospect Of China's Investment Funds

In the developed countries, the growth rate of investment fund that reached 20%-50% very one years has been faster than bank business's and stock business's. Investment fund has been an important financial tool because it's capital is 30% of value of the stock market. In China, the standard development of investment fund began from Nov. 1997 while "Management Provision Regulation On Securities investment fund"issued. Now, there are 90 fund organizations including 22 fund organi- zations going on the stock market. Through Chinese fund organizations on the scale are smaller than the developed countries, they reaching fifties billion RMIB totally are the best larger investment organizations. New fund's effect on changing the structure of investor and stabilizing the stock market has been showed. In the future, investment fund's effect on the stock market will be strengthened. Now, Chinese fund also had many problems which had blocked it's development. Especially we must face some new problems when China becomes an member of the World Trade Organization. So I bring forth some countermeasures to solve problems and a new development mode of invest-ment fund.