China's Security Investment Fund Industry-SCP Analysis

The end of 2006, the net value of the China's fund industry has already been up to 856,500 million. The security investment fund has been the important one of the most important investment tool of the Chinese. Generous repayment of the fund made the fund market strengthen rapidly; issue speed and scale grow with each passing day. The fund companies establish the image of the professional financing.By the look of variety of fund, China has put out the stock fund, bond fund, and monetary market fund, develop such varieties as ETF, LOF, etc., and take very great step in trying QFII, QDII. With the fast development of the China's fund industry, the position that the securities invest fund in the China's capital market and influence power are improving constantly, its positive role to development of China's capital market is showing progressively too.This text uses SCP model to analyze the market structure, market conduct, market performance and mutual influence of the fund industry of China. This text proceeds from angle of the industrial organization theory, the market structure has determined the market conduct and the market performances of the management company of the fund at that time. Because of the enhancement of the market competition factor, can produce the positive role in improving the market conduct and the market performance. The government should make great efforts to dispel the administrative barrier to raise the market performance of the fund industry.On the basis of using foreign advanced experience for reference actively, combine the concrete conditions of fund industry's development of our country, I think industrial policy of government should put in capital market environment and set up market structure that can compete especially, thus promote the investment funds industry to develop in a healthy way fast. Direct against the defect and question in various fields of fund industry of our country, have proposed the measure. By doing this, the market environment will be good and health, and lead the market conduct of the fund manager to develop in the sincere and specialized direction through encouraging and supervising, thus reduce the transaction cost of investors and participate in the market, raise the performance of the fund market. .