Research On The Market Structure-Conduct-Performance Of China's Securities Investment Funds

Since the first fund issued in 1998, securities investment funds in China have been growing by leaps and bounds in the recent 8 years. The securities investment fund industry has been an important institutional investor in financial market. Compared with the developed oversea fund industry, the securities investment fund industry of PRC is still an infant and many new problems and difficulties may appear while growing-up. So it's of vital importance to make deep research on the securities investment industry.This paper uses the SCP (Structure-Conduct-Performance) paradigm to analyze the inter-connect effects of market structure, market conduct, market performance of the fund industry of China via industry organization theory. According to the investigation the development of the fund industry of China, it's easy to see that fund industry of China is developed under the leadership of the government, and the market structure with strong administrative character. So the earlier market structure has the nature of typical monopoly. This type of market structure determined the conduct and the market performance of the fund management companies at that time. As the fund market continuously expands, the market structure transforms from a monopoly one to a combination of both monopoly and competition gradually. As the competitive factors increase, the market structure is sure to be more perfect, which affects the performance of the fund industry.Through the analysis of the fund industry, this paper gives some advice for optimizing the market structure, improving the performance and developing the securities investment fund industry.