China Open-end Fund Related Party Transactions And Their Specifications

Actually affiliated transaction is a neutral business behavior. On one hand, it can lower the transaction cost and improve the decision-making efficiency. On the other hand, it can also disorder the market and damage the investors. Recently, affiliated transaction has widely existed in securities market, open-end fund is also involved. The original intention that our government establish open-end fund is expecting it to exert the special financing function and maintain the stability and prosperity in our market. But because of the complicated structure of the open-end fund and particularity of the transaction, affiliated party wantonly make use of the fund property to undertake affiliated transaction. As a result, the interest of the whole society and investors was badly damaged.Therefore, this paper chooses the affiliate transaction as research object and discusses it from difference points, such as definition, forms, reasons and impacts, and then suggests combining internal management with external government to restrict the affiliated transaction.After referencing related information, I found scholars research centralized the regulations and shorted of the causes and forms. The innovation of this paper is that it totally and systematically analyzes the affiliated transaction from the essence of the open-end fund and affiliated transaction and put forward my own suggestions.