The Governance Research On Securities Investment Funds In China

With the rapid development of a long time, securities investment funds have been the important investors in China's capital market. It is a good way to help a large amount of small investors make more money. It can collect more money at short time with its advantages. In several years, the scales of securities investment funds has been beyond several hundred billions and the quantities of funds management companies have been too many. The interesting of China's investors about the funds has been more than the market's expectations.As for new things' development rules, every innovate product has its advantages and disadvantages and the rules still fits for the securities investment funds. Its advantages mainly demonstrate: advanced investment ideas,portfolio tools and senior financial talents. Its advantages let unspecialized investors share more higher investing returns ratios,more lower venture,more little opportunities costs and more shorter timing choices. Its disadvantages mainly demonstrate: the characters of securities investment funds' organization lead to its problems more complicated and the governance mechanism and structure more imperfect.Commonly speaking, under the stable financial situation, the performance of the securities investment funds is determined by the talents team's special knowledge and work attitude. Although both factors are the key to the development to the funds' performance, but from the angle of the enterprises' value and the investors' power, the special knowledge deals with the problem of "how to do" and the work attitude deals with the problem of "why we do?". All these phenomenon demonstrates that the work attitude of the team is the important motivation which they will make good use of special knowledge. As far as many problems happening in the course of the securities investment funds'market usually are concerned, the reasons of these problems are the work attitude of the funds managers. In the course of the systematic reflection and balance of the market, investors and researchers have found: on the background of the global and international finance, the strength of the spirit-restriction is little and little and the power of the market and rules-restricitons is more and more. The governance of securities investment funds are the focus of the investors and researchers.The paper systematically researches the governance of China's securities investment funds on considering the macro-financial situation,the interests of the funds' holders,equality structure,the characters of the bonds and the encouraging mechanism.First, the paper compares the funds' governance model. From the organization information, securities investment funds includes two styles: firms funds and contracts funds. The differences of the organizational structure lead to the differences of the funds' governance model. The paper will deeply and clearly understand the operational motivation of these two kinds of the governance through discussing and analyzing many related problems ,such as the governance factors,governance keys,the law circumstance,the development stage of the market and the management bureau, and so on .The paper will better help make clear that the difference beween the funds' governance and the companies' governance.The next step of the paper comparatively researches the governance model between China and America. Regarding the development of the international mutual funds, the funds industry in the western countries has been a long time and the governance of the funds has existed much success and faults. The paper emphasizes the organizational structure and looks the America mutual funds as a point and looks China's contracts funds as another point. The paper analyses and compares the internal governance factors between China and America.The three step of the paper expresses clearly the law status and relationships of the funds' main actors. The funds is both a kind of investment tool and a complicated organizations. The shareholders,the beginners and the managers are great important in the course of funds' operations. The paper focuses on the changes of the Mainers' law status,clearness of their responsibilities and their relationships. Specially, the paper points out the relationship between the little amount of the beginners and the much amount of the shareholders, between the important beginners and the funds' managers, between the powerful managers and the unhopeful trustees.Further speaking ,the paper empirically researches the relationships between the governance factors and the performance,costs and the ventures on considering the equality,the bonds' characters and encouraging mechanism.The first empirical research discusses the definitions and the main contents of the funds' equality, calculating index and the relationship with the performance. This part concludes the seven characters using some useful data analyzing technology: the character of the funds' shareholders, the funds' share character of the organizational investors, the funds'share character of the beginners, the funds' share character of the management companies, the fundamental character of the management companies, the share ratio character of the securities companies and the cumulating-balancing character of the management companies. This part proves the relationship of the funds' equality and the funds' performance with the example of 54 closed-end funds in 2004 and 2005 year. The results of empirical research is that some factors of the equality aren't positive effects on the funds' performance and improving and perfecting some factors can prompt the performance of the securities investment funds.The second empirical research chooses 110 funds including 54 closed-end funds and some other opening funds as the example in 2004-2005 year and expects to get some useful conclusions on the relationship between the bonds' character and the performance and costs factors. This part establishes three models to look for the internal relations of the factors. The results demonstrates: the bonds scales is related with the performance and the costs, the independent trustees factors is unrelated with the performance but related with the costs factors, the bonds factors is dramatically related with the change of the irresponsible funds managers.The three empirical research still chooses 110 funds including 54 closed-end funds and some other opening funds as the example in 2004-2005 year and expects to get some useful conclusions on the relationship between the funds' management fees and the performance,venture factors. The results demonstrates: the management fees is unrelated with the performance but related with the venture factors.At last, the paper discusses the effects of the operational risks and dealing ideas, the significance of the bank and suggestions on how to improve the governance.Although the paper researches some main governance problems of the securities investment funds, but the paper still further need be discussed and researched, some governance factors and performance index still need be perfected.