The Research Into The Development Of Money Market Fund In China

Money Market Fund (MMF) is one of the main categories mutual funds, it paid market-based rates by investing the small sums gathered from many customers in short-term market instruments-primarily commercial paper and Treasury securities and in large certificates of deposit. Even though money market fund had been developed fast in developed countries market, it is still a white page in China now. Considering the present economic and financial environment, MMF can stimulate the development of money market, capital market and the funds, help the reform of interest rate by market and the carrying out of monetary policy. It can also accelerate financial innovations, improve financial efficiency. So the research into the development of money market fund in China has the great actual significance.In this paper, we introduces the characteristic, operation and function of MMF, discusses the necessity and feasibility of setting up MMF in China. We also discuses the applicability of the MMF investment by taking account of China' s reality and intentional experience.In charter one, firstly we introduces the definition, categories and characteristic of MMF; secondly we introduces the detailed operation of MMF. The second chapter introduces the function of MMF and the reason for the origin and development of MMF by describing MMF of U. S. A. On the basis of the second chapter, the third chapter introduces such asfollowing: Considering the present economic and financial environment, MMF can stimulate the development of money market, capital market and the funds, help the reform of interest rate by market and the carrying out of monetary policy. It can also accelerate financial innovations, improve financial efficiency. Money market in today' s china has wide development scope and bright future, the performance of the funds also set good foundation for MMF and the reform of interest rate by market helps it a lot. The fourth chapter introduces the factors that hold back the birth and development of the MW in some extent. On the basis of the fourth chapter, the fifth chapter introduces the suggestion about developing MMF in china.