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Preliminary Study On The Development Of Open - End Fund In China

Posted on:2004-06-18Degree:MasterType:Thesis
Country:ChinaCandidate:L JiFull Text:PDF
GTID:2206360092485106Subject:Finance
Abstract/Summary:PDF Full Text Request
一, The background and the purposeWith the development of the market economy in China and the integration of the global economy, the security investment funds have developed swiftly and violently in our country as a kind of new financial investment tool. When the security investment funds came into existence in 1998, there were only five standardized fund management companies with 107.4 hundred millions RMB fund assets. Up to now, the number of the companies has increased to 24 and the fund assets have amounted to more than 1300 hundred millions RMB. Accordingly, the ratio of the fund assets to the circulating market value is raised from 1.87 percent to 10 percent. Although the investment return of the funds is not good enough to make the investors satisfied, it matches the low risk completely in the long run.Not only the expansion of the quantity but also the improvement of the quality embodies the development of the securities market. Firstly, the scope of the fund company initiators has been broadened obviously. In June, 2001, the China Securities Regulatory Commission implemented " the good man raises hand" system, which broke the monopoly, stirred up the competition and promoted the development of the fund industry. Secondly, the new species of funds flow out continuously. There are not only the stock funds, but also the bond funds; not only the closed-end funds, but also the open-ended funds which come later but surpass the formers and become the main current species in fund industry. In addition, the new species such as ETF and LOF are in the process of researching and developing. Thirdly, the consciousness of the trustworthiness and the obedience to the law in the fund industry has been strengthened continuously. Besides of 《 the Security Investment Fund TemporaryRule 》 and 《 Open-ended Funds Experiment Rule 》, 《 the Security Investment Law 》is in the establishing process and is possible to be passed in the mid of 2003. The issurance will undoubtedly make the fund industry operate orderly and legally and bring good chances to the great development of the fund industry. All kinds of evidences show that our country's funds market will enter an era with a high-speed development after 2003.Opportunity and challenge coexist. The development of our fund industry is sure to have a bright future. However, the stock market has not yet got out from the trap of the declining tendency, which has deeply affected the operation of the open-ended funds in our country. According to the statistics, the total loss of the fund industry exceeded 10 billion RMB in 2002. Up to Mar. 21 in 2003,the weight average discount rate of 54 closed-end funds has reached 15.47% and the discount rates of some large-scale funds are even close to 20%, which has made the investors lose their confidence and has resulted in continuous redeemability. Of course, the main reason which leads to the large losses is the continuous recession of the stock market, but we can't neglect the problems accompanying the development of the fund industry . On the contrary, we should objectively analyze the special circumstances of our country's fund industry and try our best to find out effective solutions. Referring to the experiences of other nations, a specific road with the Chinese characteristic must be found out to ensure our fund industry a healthy and orderly development.By means of theoretical and empirical methods, this thesis demonstrates that it is necessary to introduce the open-ended funds to China investment funds industry. At the same time, based on the actuality of our country's open-ended fund and the measures adopted by mutual funds companies in U.S, the thesis presents references to China funds management companies.二, Main contents and ideasThe theme of this article is PRELIMINARY INQUIRE OF THE DEVELOPMENT OF THE CHINA'S OPEN-ENDED FUND INDUSTRY with its core made up of two parts. Firstly, according to the characteristics of the open-ended funds, the author analyzes the open-ended funds and clos...
Keywords/Search Tags:Open-ended fund, Index fund, Umbrella fund, Principal-agent theory
PDF Full Text Request
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