Study On The Relationship Between Funds And Finance Stability

The funds get great improvement from its beginning. It has great proportion in development countries financial assets structure and has the vital effect on financial healthy and steady development. Speaking to the reason, besides its adventure distribution, steady and good profit and high currency, its internal coordination of risk and preference is the deep reason for funds rapidly development.Chinese funds is at the first beginning. Because its development was based on the immature stocks market its beginning was compared with so many problems like system and supervision with China entry into WTO, its financial entry will gradually open. The international private asset formed fund will flow into China. So it is necessary to study the other newly-developing countries' financial fluctuation caused by this.After substantial research, it is found that Chinese funds development will have some influence on financial stability. But as for long term, the fund development will promote the stability of stock market and calm down the fluctuation.With the production of opening funds, it will become the key point of next stage of market development. But in financial situation of nowadays the opening funds probably incurs to the great change of Chinese financial situation structure and has great attack on macro-financial stability. Despite this, there also have many problems like "moral risk", "Attacking Effect", liquid risk of stock market and weak division supervision.There has a unneglective power in funds market, "private-raising Funds", which already has great scale. But it also has some problems, such as illegal status, ultra-development, serious inner exchange, great system risk. It is necessary to assure its legal role, enforce supervision and promote its healthy and stable development.This paper systematically analyzes the relationship between the funds development and Chinese finance stability. This paper also answers the questions in the Chinese funds development from micro and macro aspects, and provides the solution, which has some realistic meanings for finance supervision authorities.