Research On Institutional Innovation Of China Mutual Funds Market

As a part of China securities market, China mutual funds emerged as raising-money institution instead of investment one during the transitional period. Apparently, we learn from external institution, inevitably, with some institutional defects due to different institutional environment which depended on. This dissertation applies the analytical frame of New Institutional Economics to analyze the institutional changes in China mutual funds market and requires some of the problems preliminarily on the base of China institutional background of being and developing from the point of dynamic view. It also makes some suggestions to perfect institutional arrangement for the purpose of fine development of Chinese mutual funds.The dissertation contains five parts as follows.Chapter one is the guidance part .It appraises the previous documents briefly and gives definite connotations to some basic concepts such as institution. Chapter two elaborates the process of introduction and development of mutual funds in China, in term of formal institution, condition in both of old and new phase is sum up; As for informal one, progress, of investment idea is discussed and four phase of progress is put forward. Also it points out institutional defects, mostly on formal institution such as organization, service and governance. Chapter three gives the theoretical analysis to the above. Firstly, introduces the general scheme of New Institutional Economics critically, and then applies Institution-Change theory to analyze defects on formal institution. Subsequently, it applies Principal-Agent theory to analyze moral hazards of informal one initially based on static and dynamic game models of information . Finally it assesses the main and essential reasons.On the basis of aforesaid analysis, Chapter four and five brings forward principle and policy selection of institutional innovation, combined with actual conditions of our country. Due to Informal institution changed slowly and endlessly, and formal one can planned after taking informal system into account. So, according to Chapter four, formal innovation should pay more attention to arrangement. Chapter five holds that informal innovation should give priority to moral education ,specially to establishment of socialistic financial culture. Also it provides some regulatory measures.