Investigations On The Governance Of Chinese Securities Fund Industry

From2007, China has seen an explosive growth in its domesticsecurities fund industry, with more companies entered in, more fundsincepted and increasingly larger asset under management (AUM). In spiteof the prosperous outlooking, critical hidden problems also appeared.Since2008, the total AUM within the industry has little expansion,companies’ over-focusing on products initial offering, while ignoringsustainable marketing, along with disputable huge losses for individualinvestors and high turnover of core employees, have greatly undermined thereputation of the new profession, harmed investors’ financial interests andobstructed the healthy development of the industry.Under such background, this dissertation aims to investigate on aboveissues, and to produce innovative perspectives in both managerial practicesand academic theories.Facing these bottle necks and challenges, the author is trying to notonly find out the underlying causes, but also propose possible solutions,such as “fund shareholding plan”,“corporate stakeholders plan”, feestructure re-design, and staff motivations, etc., in order to fundamentallyalign the goals and actions between fund operations and corporategovernance, and eventually benefit the fund shareholders.Chapter1reviews the history of the governance of China’s securitiesfund industry, and points out the importance of corporate governanceenhancement, and how to achieve.Chapter2provides an overview for the current corporate structure,characteristics and problems in industry, with investigate and survey data. Chapter3proposes fund shareholding plans and optimized feespolicies for open-end funds, as possible solutions.Chapter4describes the mission of combining “fund-shareholdersfirst” policy, complaint operations and investors’ educations, and the goalof alignment funds management and company governance.Chapter5further balances the interests of all stakeholders around, andproposes the concept of “humanized governance”, which would bettermotivate the team and improve the performances.Chapter6concludes with the innovations and practical importance ofthis dissertation.By adopting a combinational method of theoretical review,comparative research and empirical study, the author tries to probe andreason those critical hidden problems in industry, in purpose of finding outacceptable mechanisms to improve the industry governance, protect theinvestors, strengthen the public trust, avoid systemic risk events, andeventually promote the steady and healthy development of securities fundindustry in China, as one cornerstone for the emerging capital market.