China's Securities Investment Fund Industry "insider Control" Analysis

Ⅰ,Investment fund is a popular entrusted investment instrument. The managing company of fund gathers scattered capital from the masses, and leaves in trust to experts with professional knowledge and investing experience who will manage and execute it, and at the same time entrusts financial institutions to keep the accumulated fund. The manager of the fund tries to reduce the risk and make the fund appreciate stably. The investors of the fund share the income and shoulder the risk by their investing proportions.Although the fast development of investing funds in 1980's cannot do without the endowment insurance system set up by developed countries and the expansion of insurance market, the fundamental reason lies in the advantages within the investment fund. Investment fund has three superiorities to commercial banks in system arrangement. In the present phase in our country, investment fund has many practical meanings :1,Investment fund can make the securities market stable. There are, however, some preconditions for investment fund to stablize the securities market. Only with the consummation of market construction, increase of organ investors and expansion of market circulation ,can the fund bring this function into play；2,Investment fund can improve the diathesis of listed companies；3,Investment fund may allure foreign capital and accelerate China's opening drive. Investment fund is a indirect mode of opening securities market, which fits the present national situation of our country；4,Investment fund is a new way to reform of the managing mode of our country's assets, for which we can learn from "The Yingfu Fund" of Hongkong.Ⅱ,Specialized management and scientific organizing fabric is a characteristic of investment fund．Contracting fund and corporation fund have different organizing fabric and law relationship．Different from The Temporary Rules for Managing the Securities Investing Fund of PRC and the actual practice in the handling of the fund, the author thinks the party concerned of the contracting fund should include the fund investor,the fund manager,the fund keeper but not fund initiator. The relationship among the three sides is as follows: the fund investor and the fund manager constitute an entrusting contract through buying and selling fund units, in which the fund investor is client and beneficiary while the fund manager is assignee；the fund manager and the fund keeper constitute an entrusting contract by the trusting of the fund's assets, in which the fund manager is client while the keeper is assignee and the investor is beneficiary. At present time, the inner law relations of our country's securities investment fund is basically based on German mode. In the author's opinion, new investment fund act should use the theory of trust to erect the law relations of every party in the investment fund. However we should ameliorate German mode and make clear the trust relation between the fund manager and the fund keeper.Corporation fund have four parties: the fund holder,the fund corporation,the fund manager and the fund keeper. The relation among the four sides is as follows: the fund corporation is an incorporated company set up according to the corporate act; the fund investor is the stockholder of the fund corporation；By way of entrusting the fund corporation accredits the fund manager to manage the fund assets with the aim of keeping and increasing value and thus the fund corporation is client and the fund keeper is assignee；By way of entrusting the fund corporation accredits the fund keeper to supervise the fund manager and thus the fund corporation is client and the fund keeper is assignee.Although contracting fund and corporation fund have different organizing fabric, the essence of the two funds is a financial system that formed by trust relation. So investment fund is a financial affiance in nature. The most essential character of affiance lies in "the separation of ownership from benefits" of the affiance property. Here, "the separation of the ownersh...