A Study Of The Establishment Of Maritime Investment Funds In Hainan

Marine industry is an important part of national economy. Development of Marine industry has important significance to safeguard national sovereignty, protect the marine ecological environment and promote economic development. Hainan Province is a large marine province. So it is necessary to pay attention to the development of marine industry,which could promote the construction of international tourism island, safeguard the interests of the South China Sea and build an important hub of the sea Silk Road. However,due to the large environmental impact of the marine industry, marine industry investment has the high risk and a long period, the traditional mode of investment and financing can't provide sufficient financial support for the development of the marine industry. Therefore,it is essential to creative the mode of marine industry investment and financing. As a new financing instrument, Industrial Investment Fund has the function in the collection of social capital and it has relative advantages in capital stability compared with other financing methods and conforming to the marine industry characteristics. It is a wide development prospect to develop Marine industry investment fund of Hainan province, and the study of Marine industry investment fund of Hainan province is both of theoretical and practical significance.The paper mainly studies why and how to establish maritime investment funds in Hainan. The reasons for such establishment are discussed at both theoretical and realistic levels. At the theoretical level, theories relating to industry barriers, transaction costs, risk sharing and information asymmetry are quoted to explore the important significance of industry investment funds; meanwhile,the government getting involved in these funds can make up for the market failure caused by externalities, execute industry policies and effectively lead social capital into monopoly industries, and it is also an inherent requirement for changing the way of fiscal investment and financing. At the realistic level,maritime investors are all of a single kind and investments made in traditional ways are insufficient, as indicated by the analysis of the development and investment status of Hainan's maritime industry, which calls for innovative ways of maritime investment.Maritime investment funds can cover the shortage of maritime investment, realize the structure upgrading of maritime industry, drive the establishment of modern enterprise system in Hainan, and relieve the pressure of the local government. At the same time, the abundant maritime resources,great prospect of Hainan's maritime industry,extensive capital sources and channels, and increasingly perfect financial environment all secure the establishment of maritime investment funds in Hainan.Through the above theoretical and realistic analyses,the paper concludes that it is necessary and feasible to establish maritime investment funds in Hainan. The following part explains how Hainan establishes the funds. By learning from other provinces'experience in establishing and developing maritime investment funds, the paper studies how to establish the same in Hainan, including the principles of establishment and development goal,capital source and composition,operation mode,and investment direction. Finally, the paper proposes suggestions on how to establish and develop maritime investment funds in Hainan in a better fashion, which include strengthening financial guidance, normalizing fund operation, and creating a favorable external environment.