Development Strategy Of China's Investment Fund

Along with the formation and advancement of the securities market in China, a new type of invesiment tool - investment funds come into being. It has a lot of advantages such as its expert money management and professional operation, the wide distribution of investment risks, its steady rates of return, its better liquidity and so on. From 1987 till now, the investment funds in China have gone through three stages-the embryonic stage, the growing stage and the regularizing stage. They have been growing from immaturity to maturity, from irregularity to regularization. Up to the end of 2000, there are 34 regularized investment funds, which are under the management of 10 investment fund management companies respectively. The amount of their assets totaled 56 billion RMB yuan. Nowadays in China, investment funds are becoming a more and more important financial investment tool, therefore, it is of great meaning to study and develop the investment funds for the prosperity of China's financial market and the healthy development of the whole economy. At present, the securities market in China is in such an immature state that there is a thick speculative atmosphere around it and the violently fluctuating stock market, while, as the institutional investors in the securities market, investment funds have the function of stabilizing the securities market. Therefore, our government and all circles in the society lay their ardent hopes on the investment funds-?hope they can help stabilize the securities market. However, the history of investment funds in China is not long and there are various problems existing in the operation of investmentfund management companies, the legislation and supervision of investment funds as well as investment funds themselves, so their above-mentioned function couldn't have been brought into full play. In this paper, on the basis of introducing the concepts, characteristics and categories of invesUnentfunds, the author compared the investment fimds in other countries or areas of the world from several aspects; then, on the basis of introducing the history and present state of investment funds in our country, made some quantitative analyze of investment funds in China, with related data, from three aspects which are the relationship between the investment fund index and the securities market index; the relationship between the assets net worth of investment funds and the securities market index; the comparison between the average earnings of investment funds and the securities market Thereafter, the author raised the existing problems of investment fund industry and finally advanced the corresponding strategies of solving those problems. The author believes that, along with the improvement and development of investment funds in our country, the investment funds will be bound to give a full play to the functions of stabilizing the securities market What's more, the investment fund industry will soon become the third largest financial industry of china following the commercial banks and insurance industry and do a great contribution to the economical development of China.