Study On The Money Raising Of Securities Investors Protection Fund

Securities Investors Protection Fund(SIPF) is a new system which is introduced by Chinese "Securities Act" of 2005. As a important aspect of the SIPF, the money raising system has an important influence on the implementation of SIPF. This paper mainly adapts research methods of comparison and demonstration. First, this paper will briefly discuss the money raising system of SIPF, and then focus on the basic theories about it, such as the principle of fund raising, sources of the fund, the structure of raised capital, amount of the fund, and so on. After that, the author will offer some suggestions to improve the money raising system.After the introduction, this paper can be divided into the following five parts:The first part aims to discuss the basic theories of money raising system of the SIPF. Money raising system involves the principles of fund raising, sources of the fund, and the structure of raised capital and amount of the fund. SIPF's financing should adhere to market-oriented principle, adequate and appropriate principle and flexible principle. Sources of the fund should include money levied from securities companies, investment income of the fund and other sources. The amount of the fund should adhere to the principle of adequate and appropriate, and it also should be adjusted according to the demand of the securities market.The second part introduces the money raising system of SIPF in foreign countries and areas. This part analyzes the money raising system of United States, Canada, Hong Kong and Taiwan of China. Then focuses on their methods and measures which worth learning. These methods and measures include adhering to the diversity of sources of the fund, and adhering to the market-oriented principle, and paying attention to the investment, and connecting fund raising and amount of the fund.The third part introduces the basic regulations of Chinese SIPF's money raising system. This part mainly analyses the sources of Chinese SIPF, the structure of raised capital and the amount of the current fund. The sources include parts of exchanges fees, payment of securities companies, the central bank re-lending, government supporting, etc. Chinese SIPF consists of market-oriented capital and non-market capital.The fourth part examines the current money raising system of Chinese SIPF, and then evaluates the advantages and disadvantages of the current money raising system. This part points out the shortages of current regulations. According to SIPF company's annual reports and monthly reports, this paper analyzes the sources of Chinese SIPF, the structure of raised capital, and amount of Chinese SIPF. This paper holds that although current legislation of Chinese SIPF has offered diverse sources for money raising, but there are still following shortages: some fund-raising standards is not clear, and the structure of raised capital is disproportion, and also the adjusting mechanism for amount of the fund has not yet built.The fifth part focuses on how to perfect the money raising system of Chinese SIPF. This paper holds that the design of money raising system of Chinese SIPF should obey the guiding aims of "market-oriented" principle, and use the measures and methods of mature market in foreign countries and areas. Thus, Chinese SIPF can play a certain part in protecting investors and maintaining the stabilization and development of securities market. This paper recommends that: Chinese SIPF should regard related fines and confiscation as its sources, and set up an investors participating mechanism. And then, Chinese SIPF should increase the proportion of payment from securities companies and fund investment incomes, and design an adjustment mechanism for the amount of Chinese SIPF.