China's Investment Funds Market: Situation, Problems And Suggestions

The market of investment funds has become the important part of china's financial market. This market plays a significant role in china's financial system. This paper dose researches on this market, analyzing the situation and problems, than providing some new thinking and advice to the reform of china's investment fund market.In the chapter one, this paper first introduces the fundamentals concept of investment funds and summarizes the development of china's investment funds in last 7 years, this chapter also researches the advantages and the economic effects of investment funds. Later, the chapter two analyzes the problems in the development of china's investment funds. These problems include: defects in structure of investment funds governance, restriction of financial environment, and defects in china's funds trade-off system.In order to reform the mechanism of china's investment funds, using the international experience and economic theory, form the chapter 3 to the chapter 5 gives three suggestions: reform the structure of china's investment funds governance, prompt the diversification of fund agent company investors, innovate the trade-off system of funds. Chapter 3 concerns the right of the fund-holders, giving some methods to improve the inside and outside mechanisms of china's funds. Chapter 4 concerns the diversification of funds market participant, evaluating the influence that commercial banks, insurance agents and foreign investors have on the funds market. Chapter 5 concerns the innovations on china's fund market, introducing ETF and LOF, reaching a conclusion that the innovations can deal with the defects in china's funds trade-off system.With the systemic researches on china's investment funds market, this paper may give some valuable suggestions to the related authorities.