On The Relationship Between Security Investment Fund And Security Market In Our Country

In the year of 1992, ShenZhen security exchange and ShangHai exchange were founded. In the same year domestic security investment fund had come into being. Although domestic security fund is just one new fellowship among the queue of the security products, the branch would make great effect on domestic market as it obtains inner advantages over other security products. During the period of its development domestic security fund has made a rapid progress with the increasing quantities and wider market influence. Security investment fund holds a higher and higher status in security market. Meanwhile the understanding of people about security investment transits from one to another. At first people think security investment fund as nothing unimportant. Later investors take security investment fund as miracles. Nowadays investors can take rational attitude towards security investment fund. Such transition is one kind of natural reflection by people following the development of security investment fund. Fortunately such transition is always one kind of spirally upward process. Chapter one in the paper introduces the status quo of security investment fund including its history, quantities, categories and characters. There is something to speak of. That is, when discussing the categories the paper not only covers the classification of different countries but also make a research on domestic category standard.It's well known that there are lots of endogenetic problems of domestic security market left over by history. One cause is the disparity between the actuality and the originality. As time goes by the severity has been increased. After a new millennium came into the corner domestic market fell into the trap of big troubles that arelighted up by the nearly three years beer market. Common investors have lost their confidence on the security market and the entrepreneurs lacking of capital are facing financial problems. To handle the problems of domestic market we need the cooperation among related aspects including the government, and the better of our macro-economy. The latter part of chapter one introduces the general situation of domestic security market such as the history, the characters, the problems and the functions to national economy. This part aims to show the importance of domestic security market on our economic development. Another consideration is to make out the functions of our security investment fund on national economy through our security market.Security investment fund undertakes the responsibility of one of institutional investors to the market especially when there are few such roles. The effects or the functions of security investment fund involve leading scientific investment concept, stabilizing security market, promoting the maturity and accelerating the openness and so on. Chapter two of the paper probes into the function of domestic security investment fund on the market. Together with the positive effects of domestic security investment fund there are negative effects. When such effects make sense the industrial image of fund is damaged and the stabilization of market .is wrecked.Security investment fund can't get away from the support from security market. Chapter three studies such aspects. The support by our domestic market to fund includes the protection of legal systems, the effective supervise, the strict risk control and the abundant investment pieces.Overseas capitals helped the born of domestic fund and sustains the later development. The capitals devote their money and superexcellent investment theories to domestic fund. Nowadays the ratio of overseas will be aggrandized. Chapter two discusses the effects of joint ventures in the industry of fund on our security market in one separate section as well as the contents of other parts.