Fund Management In China Corporate Governance Research

At present, there're some important issues of corporate governance of the security investment funds management company in china. In the long run, if these problems couldn't be solved properly, they will be obstacles which will restrict funds industry's development of our country. These problems include: Firstly, the shareholders always directly intervene the business operation of the company although they should attend the shareholders'meeting or board of directors to execute theirs rights. Secondly, the shareholders of the company create the illegal interests for their affiliated parties by unfair affiliated transactions. Thirdly, the shareholders are not the real share owner of the company just because the real one is not qualified. The main reason for above issues rest with the lack of the adequate monitor on the shareholders of the company, incomplete legislation and the interests conflict between the company and the fund investors. Against above questions, the text is mainly using policy analysis and case studymethods and putting forward some ideas and advices to improve our fund company's corporate governance structure through analyzing the actuality and figuring out the existing problems and basing on mutual funds governance structure in USA for reference.This full article is divided into five chapters. In chapter one, some definitions about funds company's corporate governance are preliminarily depicted and compared with the concept of fund governance and that of listed company. In chapter two, the developments of characters for fund company's shareholding are summarized. In chapter three, the related codes and the regulation system are introduced in details. In chapter four, the existing issues on the corporate governance structure of fund company are specialized and the main reason are analyzed. In chapter five, using for the independent directors system of mutual funds in USA for reference, some suggestions to control the action of the main shareholder and improve the corporate governance are put forward as bellows:a. Strengthen the responsibilities of the shareholders and control the frequency of shares transfer.b. The system of internal control should be easier to be put into reality so that the shareholder could not impose their arbitrary decisions on the company.c. Improve the monitor function of independent directors to the shareholders.d. Establish the effective encouragement mechanism to enhance the enthusiasm of senior managers.e. Reinforce the supervision of the custodian to the fund company.f. The rights of fund investors should be intensified to restrict the fund company.