Research On The Establishment Of Industry Investment Fund In Railroad

Industry investment fund is a kind of gathering investment system, set up by the principle of "sharing incoming and partaking risk", and it will lend capital to enterprises which do not make Initial Public Offering. Railroad industry fund is advantageous to makes up the large fund gap of railroad construction. More importantly, facing to market and commercial industrial capital management mechanism will promote the financing reform of railroad, and will enhance the management level of railroad enterprises. The current railroad financing channel still mainly depended upon Railroad construction fund and debt financing of Ministry of Railways.Railroad industry fund not only increase financing channels, but has supplementary and promotion relations with the existing financing channels of railroad. Industry investment fund has its unique operating mechanism. It carries on the direct stockholder's rights investment to enterprises which do not make Initial Public Offering, and it is faced with the risk which is mainly the risk of invested enterprise itself and is more than risk of the securities investment fund. But the industry investment fund has own unique mechanism of controlling the high risk, and obtains the high capital income through the special system arrangement. There are two levels of clientage during the operating process of industry investment fund, which are between investor and the fund manager, the fund manager and the invested enterprise.Regardless of internal environment analysis of railroad, or external environment analysis, the establishment of railroad industry investment fund is feasible. The reasonable organization form decides whether the establishment of railroad industry fund will be successful. According to the characteristics of financing in railroad and the existing industry investment policy, contract style is fit for the railroad industry fund. But as to the management of fund, the railroad industry fund must introduce corporation style. And some investors will be the shareholders of the fund management company. The operation of railroad industry fund should adopt the close-end type. When Fund carries on the investment it must use the multi-kinds investment principal and grading investment strategy to reduce the investment risk. The reasonable exiting way and the exiting opportunity decide the investment income. It is necessary to analyze the prospect and the management cycle of the projects before the investment. And the railroad department must positively establish the related environment and solve investor's extra worries. The railroad must set up own fund management company and trains specialized talented person of railroad industry fund management in order to establishing as soon as possible and the later standard operation . Moreover, railroad industry fund also needs the guidance and the support of the government.