A Study On The Development Of The Corporation Fund In China

There are two types of investment fund governance models in the world: corporation fund and contractual fund. Contractual fund is the current model of fund governance in china. However, there exist a lot of defects in our fund governance structure, which are the underlying causes of numerous fund scandals taken placed in china. Considering the need of protecting the investors'benefits and the long-run development of our investment fund industry, this essay puts forward the idea of developing corporation fund in our country.This thesis is focused on to demonstrate the necessity of developing corporation fund in china currently from four aspects as follows:First, there are a lot of defects in the governance structure of the current contractual fund in China. Second, the governance structure of corporation fund is superior to that of contractual fund. Third, from the aspect of market competition, the introduction of corporation fund offers the investors other choice of fund investment, and also put pressure on the improvement of the contractual fund governance. Finally, internationally, the corporation fund is the global trend of investment fund industry.This essay also explores the existing obstacles on the road of development of corporation fund in our country——the conflicts with the current corporation law and the tax law, the immaturity of the independent directors mechanism and its relevant determinants, and the"path dependent"in the process of institutional changes.In terms of the above obstacles, some solutions are suggested accordingly: carry out the new , and adjust the regulation of the current tax law; improve the independent directors mechanism and its operating environment, and launch the corporation fund under the leading of the government.