Study Of Development Of Chinese Industrial Investment Fund

Industrial investment fund (IIF) is not only a new kind of investment instrument but also a kind of innovative financial system which can speed up industrial development and over all economic development. Chinese industry investment had made some progress but it is still in primary stage. Our government has realized the importance of IIF and has employed positive policies to promote IDF in China It is important for Chinese financial development to develop IIF and make relevant study.First of all, Chinese IIF is defined based on the analysis of venture capital in the developed country in this work. The status of Chinese industry investment is analyzed and the effect of developing IIF on Chinese economy is discussed.Secondly, the organizational form, fund source and withdrawing mechanism of Chinese IIF are discussed based on Chinese reality. Contract fund is the adoptable form for Chinese IIP at present The foundation, operation and withdrawing processes of contract fund are easy. Contract fund is better in protecting the investor's benefit than corporate fund. It is difficult to find the necessary organiger for corporate fund because the capable institution investor and common partner are absent in China. Contract fund is convenient for Chinese investor to control the fund. Presently, it can be concluded the denizen should be the primary investor of Chinese IIF based on the comparison and analysis of the capitals from common people, insurance found, enterprises, commercial banks, government and external investor, they provide capital for Chinese IIF together. Chinese IIF in the initial stage can select several withdrawing mechanisms, such as IPO, purchased by corporation, merger and acquisition, buying shell or alliance, and keeping the stock for along time.In the end, the development mode and strategy of Chinese IIF are brought based on the analysisof the Chinese economic environment. The development mode of Chinese DDF involvesfoundation manner, fund scale, management mechanism and legislative mode. The developmentstrategy of Chinese IIF is discussed in constructing and perfecting effective venture capitalmechanism, constructing effective technological innovation mechanism, expending the fundresource of IIP, developing insurance for venture capital, constructing and perfecting socializedservice system, constructing and perfecting withdrawing mechanism, leading the social fund bytransformation of governmental function and perfecting the relevant Laws and Regulations.