On This Stage, China Securities Investment Fund (imf) In The Form Of The Selection And Optimization

This paper aims to discuss the value of corporate type securitiesinvestment fund under current Chinese legal system. It consists of 3 parts:preface, text and conclusion. The preface includes the original intentionof this paper and its reasoning method. There are four chapters in the text:introduction of American Investment Company, the problems of currentChinese securities investment fund and the solution thereto, the value ofcorporate type securities investment fund, how to perfect Chinesesecurities investment fund in light of independent director system.Chapter one is the introduction of American Investment Company.Given the fact that American investment company has been viewed in allaspects as the blueprint of Chinese securities investment company bysome scholars, I think a brief introduction of American investmentcompany would be helpful not only to the writing of this paper but also toclarify some mistaken viewpoints about the structure of Chinesesecurities investment fund.There are 3 sections in chapter one. The first section introduces thedefinition and legal frames of American Investment Company whichexactly is the counter part of Chinese securities investment fund in USA.The second section introduces the category of Investment Companybased on management method and structure. Section three tries to clarifysome mistaken viewpoints on Investment Company, concerning its legalstatus and the core component of its legal system, which, I think, wouldbe very important to the next analysis.Chapter two is the problems of current Chinese securities investmentfund and the solution thereto. The first section briefly reviews thedevelopment of Chinese securities investment fund. The second sectionanalyses its problem and the origin thereof. The third section introducestwo kind solutions to these problems, amending contract type andestablishing corporate type.Chapter three is the value of corporate type securities investment fund.This is the primary part of this paper. It aims to prove that corporate typeis valueless in the whole, although with some reasonable components.The reasoning in this chapter comes from two perspectives, theoryand practice. Section one is about the nature of corporate type investmentfund. After distinguishing several definitions which tend to causeconfusion, and analyzing managing0 process of the fund, I make theconclusion that the nature of corporate type investment fund is still trustrather than corporation. Section two discusses the value of FundCompany which is like ordinary corporation in the legal status butdifferent in the internal organization. My viewpoint is the legal status ofcorporate type is helpless, whereas the internal organization could behelpful. Section three introduces the challenges of establishing thecorporate type, such as legal barriers and high management costs. Basedon last analysis, section four makes a conclusion that we can correct theflaws of current contract type investment fund by stabling independentdirector system or similar design.Chapter four is how to perfect Chinese securities investment fund inlight of independent director system. Given the problems of currentChinese independent director system in corporation governance, I thinkthere still more work to be done if we try to correct the flaws of contracttype investment fund by setting up independent directors therein.And the last part is brief conclusion of this paper.