Research On The Securities Investor Protection Fund In China

To protect investors, especially minority investors, is the core content of the securities market supervision. In the meantime, it is as well the basis to keep the securities market running healthily. Long term experience of overseas mature capital markets has proved that protection fund for securities investors is an effective practice which can protect the interest of minority investors, implement the smooth exit of securities institutions and counter the risk of financial system. From later 2005, our country speeded up of founding securities investor protection fund, correlative framework of law system has been established. China Securities Investor Protection Fund Corporation started its operation. But as a kind of innovation in our country, it will face many problems, a series of basic systems and policies should be established, some important issues need to be addressed. This thesis thus has a realistic positive meaning in our country.This thesis compares protection funds for securities investor in major countries and discusses this problem from five aspects, including the legal framework, the organization mode, the fund source, the compensation mechanism and the operation situation. In addition, by introducing externality theory, asymmetric information theory and adverse selection theory, this article elucidates the necessity and feasibility of founding protection fund for securities investor in our country. Finally, base on the characteristics of our country's securities market, this thesis puts forward the corresponding suggestions of protection system for securities investors from scopes of investment, corporate governance, compensation, finding-raising mechanism and perfecting relevant supplementary measures.