Open-end Fund Development Strategy

The developing process of world investment funds obeys the rule from closed-end fund to open fund. Now, the open fund has become main method of world funds market. Open funds have taken 90 percent share of America, England, Hongkong and Taiwen funds market.China's open funds have been put into practice. Many people has been familiar with the open fund as Hua'an Creation, South Stable Growth and Huaxia Growth came on and open funds of other funds management companies will come on soon. It is certain that China's open funds will become the most important part of China stock market.This paper expounds my own opinions to open funds from three parts:First, the emerging of open funds is the necessary result of china stock market's development.This part first gives some opinions about the basic concepts, classification, characteristic and comparison with banking deposits, debts, stocks and closed-end funds. And then introduce the develop tendency of mature capital market markets. I state in the paper that the open fund is the developing tendency of world capital market. At last, I give opinions on the importance of speeding up open funds in China.Second, the restriction to the development of open funds.This part first expounds that China has possessed basic conditions with the development of open funds. On this basis, I state the disadvantages of our capital market. For example, the market is not standard, we lack hedging tools, the law is not perfect, supervision is not enough, structure of investors is not reasonable, and the quality of listing companies is not good, and so on. They are all important directions in future reform and work.Third, several thoughts to the development of open funds.As to the development speed of China's open funds, I think, on the one side, we should develop open funds vigorously. On the other side, we should control the developing speed of open funds because of several restrictions mentioned in the paper. Then, I introduce running factors, how to solve restrictions to open funds, and how to manage the risk of open funds.