A Study On Security Investment Fund Governance In China

Security investment fund is one of the most important investment medium which is adjusted to the development of stock market and the impersonal requirement of investors. It raises capital from lots of investors by issuing beneficial vouchers and is operated by specialities in order to make profit .It can efficiently dispose market exposure due to its advantages in capital scale, portfolio investment information and talented managers. In addition, Investment fund is playing an important role as an institutional investor. With the security investment funds increasingly prevailing the domestic security market, knowing the theories of investment has great realistic significance.Investment fund rooted from British, and it has become an important way for raising capital in security market of the whole world after 100 years' development. Nowadays , more and more investors pay attention to investment fund due to its advantages .Compared with other developed counties , the history of investment fund is very short ,only about llyears .In 1997,as brought into effect .In fact ,the Act is a milestone in the history of investment fund in China. It makes the development of investment fund become more canonical and fast. Up to November, 2003, there are 32 fund administrants, 104 entries investment fund in our country. The whole scale of investment fund achieve 3167.4 billion RMB , and the net value of investment fund approximately attained 159.7 billion RMB which is accounting for 13% to the whole current market value of A stock market in China . Last year,< Investment fund law>as published .That is means the fund industry had come into a matured period.The subject of the thesis is the analysis of Chinese investment fund governance. Since fund industry in our country is not mature, it is very significative for funds to establish a kind of governance structure which is adopted to the situation of our country and can be used to protect the benefit of investors.Starting from the basic theoretic analysis of the fund governance, this article provides a framework for improving fund governance structure by comparing the American-Chinese fund governance and by combining the special situation and the problems in China .The article is divided into 5 chapters:Chapter 1: Firstly, introduce recapitulativly the background and situation about Chinese fund governance and the approachs used in the article. Secondly, summarize some viewpoints which had been obtained by some experts. All these contents made up of the basis of the whole article.Chapter 2: Starting from the general situation of investment fund of the whole world ,introduce the basic concepts, characteristics and the main varieties of investmentfund ,then focusing on the analysis of the theoretic basis.....Principal-Agent theory.By using this theory, the article try to illustrate the following questions: (1) What is the effective institutional arrangement in the investment fund. (2) We know the separation of ownership and the right of control in companies brings about the Principal-Agent relationship between the owner and the manager. So, How to design a kind of contract which can be used to settle the interest disagreement between the principal and the agent? In addition , the article also introduce the situation of Chinese investment fund governance.This part of the article also focus on the institutional arrangement of investment fund governance. The article pose that the effective governance structure is a necessary element to the stock market .lastly, the article introduce the governance structure of contract fund and corporate fund respectively.Chapter 3: Through choosing some funds as the sample on the security market at present in our country ( Choosed according to the achievement rank ).I have studied the structure of holding of the security investment fund in our country and the relationship between governance efficiency of the fund management company and the security investment fund achievement in China.C...