The Essential Development Circumstances Of The Funds Industry

In sharp contrast with the extraordinarily rapid development in theprevious phase, the development of fund business is confronted withcertain constraints in recent years. The reasons for such constraints mainlyinclude the aggravation of industrial competition, the intensive exposure ofthe cumulative problems resulted from the rapid development at the earlystage of funds industry, the need of improving innovation ability of thewhole funds industry and the insufficiency of professionals of the fundsindustry. In views of the above problems, CSRC clarifies that,'therelationships between the interest of the unit holders and the interest ofother involved parties','the short-term benefit and the long-termdevelopment','the active innovation and the stable operation','themarketization reform and the strengthening of regulation' must be dulyresolved so as to realize the steady development of funds industry.To better deal with such relationships, the outer circumstancenecessary for the development of the funds industry and the innercircumstance necessary for the growth of the funds industry are highlyinvolved. Economy, laws and regulation are considered as the critical outerfactors influencing the development of the funds industry, whilegovernance, operation, talents constitutes the material inner factors for thegrowth of funds industry. Outer factors act as the survival basis of fundsindustry while inner factors empower the innovation and development offunds industry. Outer factors and inner factors, with interactive effects, together determine the prospect of the funds industry. To break through thecurrent constraints met with the funds industry, both outer factors andinner factors should be considered as a whole and utilized with a dynamicintegration so as to capture the opportunity and stabilize the basis ofdevelopment.The study emphasis of this article, The Essential DevelopmentCircumstances of the Funds Industry, lies in the deeply analysis on therelationship between the substantial problems of funds industry and theouter and inner factors by considering the development trajectory of fundsindustry. Namely, starting form the influence of circumstances factors onthe industrial development, the article will raise targeted proposal forcreating appropriate outer circumstance for the funds industry and themeasures for pushing forward the optimization of inner circumstance, aswell as relevant policy suggestions thereon.During the Twelfth Five-Year Plan, both the national economy andthe capital market of China are confronted with the big challenge oftransformation, which indicates that the funds industry should alsoundertake its own historical mission. Which kind of transformation canachieve positive interactions, making the funds industry developed whilesimultaneously have active effects on the national economy and the capitalmarket? This article seeks to find the answer for this question andhopefully introduces active influence on the formulation of relevant laws,regulations and policies...