Supervision Of Securities Investment Funds

As one of the major investment tools in the financial market,investment funds are important in supporting capitalization,stabilizing financial markets,promoting industrial development,and enhancing the efficiency in resource allocation. Upon China's entry into WTO,foreign shares can reach to 33% in the joint funds,and up to 49% three years later. The entry of foreign investment funds has a far-reaching effect,and it will surely bring grave challenges to the Chinese investment funds like never before. It is a critical issue to contemplate how to quickly develop our own investment fund market,while supervising it with effective regulatory efforts. This article provides a detailed analysis of the regulatory system in governing mutual funds in the U.S.,and derives a series of successful experiences from their regulatory practice. Based on the valuable experiences and practices derived from the U.S.'s fully developed market,and considering the current market situation in China,the author makes some suggestions regarding to the policies needed in regulating the fast evolving investment fund market in China.