A Number Of Issues In The Development Of China's Open-end Fund

With entry into the new century, Chinese fund industry has undergone a dramatic growth after the introduction of open-end funds, but the development of open-end funds has not been as smooth as we had expected, a large number of problems have arisen after two years operation. This led us to find the answers to these questions. The paper tries to take an innovative approach to analyze the development of Chinese fund industry through in-depth study based on the theory of materialism and economics of system.First, the author looks back on the history of Chinese fund industry and focuses on the newly-emerged problems. Second the author looks into the reason behind the problems from the point of view of the regulation context and market conditions. Third, the author presents an innovative development approach: on the one hand, creating environments of fully competition and innovation with a series of deregulation, on the other hand, converting a traditional regulatory system to a modern regulatory system by the way of strengthening the enactment activity and the power of market force. This will ensure a healthy and orderly development of Chinese fund industry.