Comparative Analysis Of Chinese Fund Information Disclosure System With India

Disclosure regulation system is the core of fund management system, which is not to say that perfection of this system is not difficult, defects of this system may bring funds to ruin. Despite the fact that"Aftermath of Convertible Bonds"of 2007 happened in bull markets and did little harm to the interests of investors, the horrible silence of fund management companies and the refusal of CSRC to release the names of involved fund management companies in more than one month after this scandal have seriously damaged the trust of investors towards funds. This scandal seems to prove the incapability of CSRC in punishing those irresponsible fund managers. Moreover, the world has suffered from subprime crisis originated in America since 2007, and it seems that China has also suffered from this crisis notwithstanding the pegged renminbi exchange rate at its heart. After all, China cannot expect to avoid financial globalization like 1997.The best solution is to perfect information disclosure system to ease the impacts of butterfly effects.In the preliminary, the similar economic background of the two countries and the faster pace of Indian opening-up can prove the fact that comparative analysis of the two countries'fund is beneficial.The second chapter begins with the comparisons of history of two countries's funds and the laws thereof, followed by results that the two countries seemed to undergo the similar processes of development from blindly development without laws to that with regulation framework. However later in the reforms India ,which had been influenced by culture of liberalism and British legal systems, has undertaken more radical measures while China chose more warm and progressive roads.The two parts of second chapter involves the comparisons of legal framework and organizational structure, followed by findings that organizations of India are less and SEBI undertakes the most regulation functions. The distinct difference between SEBI and CSRC is that SEBI doesn't affiliate with the Indian government, in fact, SEBI is partly official self-regulatory watchdog, responsible for legislation of fund information disclosure, AMFI is obviously self-disciplinary organization, all of this seems to stress the significance of self-disciplinary regulation ,moreover, no special laws regulating information disclosure of fund industry, which maybe the reflection of Indian focus on cases; While China focus on administration ,both number and rapidity of statutory laws are well beyond India, which also accommodates the Chinese culture and customs.As far as timeliness is concerned, on the whole, India has stronger timeliness.The third chapter focuses on comparisons of advertisements, the significant and main component of self-disciplinary regulation. And then present the findings that India is more practicable with meticulous regulations, more to ascertain the realization of focus on risk exposure.In the fourth chapter, analysis of reasons for distinct information disclosure is undertaken: Firstly, trustee meeting ,unit-holder meeting and supervisor. Indian authorization underlines real-timeliness, while China stresses the dealings of aftermath of significant cases; Furthermore, evolution and origin of laws, structure of legal systems, authorization of judges and legal proceedings indicate the fundamentally distinct. Analysis of differences in history and culture custom is composed of four parts: long term split, religionary intolerance, language diversity and factionalism. Because in the context of complicated social environment the government is unable to seek primal optimal solution and hence suboptimal substitute. Accordingly, the fund disclosure system focuses on voluntary disclosure.Against the backdrop of financial globalization, global perspective is better than national perspective .Because India has shared much with China and India has proceeded faster than China in opening up capital markets. Therefore, the article has compared Chinese mutual fund information disclosure system with India in areas such as regulatory framework, acts and regulations, etc.On the basis of comparisons of two countries's fund disclosure system, the fifth chapter has made suggestions from the aspects of fund governance structure, legal system and regulatory framework.Innovation of this thesis is comparisons of Indian and Chinese fund information disclosure system on the basis of introduction of Indian fund information disclosure. On the basis of comparisons of governance structure, history and legal system, the thesis expounded the reasons of differencies of two systems.