On The Securities Investor Compensation Fund System Construction In China

Protect the legitimate interests of investor already present is a global theme. In china the "emerging and transitional "market, the investor need to more focus on protecting the legal rights. If the rights and interests of the investors are not effectively protected, it will lead to greatly reduced their confidence in capital markets,further reducing the consequences of that investment. Therefore, the legitimate interests of medium and small shareholders should receive proper protection, and protection of the legitimate rights and interests of small investors needs more priority. August 31, 2005, China Securities Investor Protection Fund set up to organize the management of company securities investor protection fund. It seems for the majority of investor a great gospel, however, we all know that not only the collapse of the broker eroded the interests of the investors , the culprit is the more daily transactions in the "false statement ","market manipulation"and a series of fraud. For how to solve these problems ,how to get their due compensation for investor losses, I try to study the mature experience of the USA—The Fair Fund, to establish a similar system of compensation fund in china with feasibility and specific design of the system.This paper has three chapters.Chapter I : First introduced the theoretical basis and practical experience of the Securities Investor compensation fund .The content,the system characteristics of the fund is mainly introduced in the theoretical basis parts ,and discusses the key investors from the security theory ,from the theoretical point of view on the trust securities investor compensation fund's institutional strengths.Chapter II: Introduced the concept and meaning of the diversified investor protection system, and analyze the investor protection system in china , focusing on the assessment of the investor protection fund system and the shortcoming of the system design. Compared the different possible paths of china investor protection system ,such as group litigation ,ADR. By comparing and analyzing Investor compensation fund for investors in china's protection system is the best choice.Chapter III: This is the key chapter of this paper which discusses the how to make up the investor compensation fund in china. In this part of discussion, the appropriate reference the theory as the theoretical basis of trust an focus on the function of the system from the location ,funding sources ,management structure, and other aspects to be addressed.