Study On The Development Of Index Fund-Exchange Traded Fund In China

It has been seven years since the release of the first domestic Exchange Traded Fund in the end of2004. While the international ETF market is booming, domestic ETF market scale is increasing year by year as well. However, from the look of running situation of domestic ETF market in2010and2011, domestic ETF seems to enter the bottleneck. In response to this trend, this paper launched a research on the development status and problems of domestic ETF market. Meanwhile, according to the research findings, this paper proposed recommendations for improvement, hopeing that they could inspire relevant regulatory agencies.This paper adopted the method of combing theoretical and empirical. The research included six main parts. Firstly, this paper elaborated the background, purpose and meaning of the research, reviewed the achievements of domestic and overseas scholars about ETF. Secondly, this paper analyzed theoretical basis and related concepts of ETF, compared ETF with general index funds, closed-end funds, open-end funds and LOFs. Thirdly, on the basis of referring to the managing experience of the United States, Europe, Japan and Hong Kong, this paper extracted three useful points which helpful to promoting the development of ETF in China, including ETF and ETF derivatives product innovation, the innovation of trading system, the construction of supporting laws and regulations. Fourthly, this paper introduced the development process and current situation. Fifthly, after collecting and sorting out large amounts of data, this paper empirically analyzed the problems of domestic ETF in the process of operation, such as the poor ETF liquidity, single product structure, unproper investor structure and so on. Finally, this paper put forward five reasonable suggestions to the above problems, hoping they would be helpful to the regulators and fund managers of domestic ETF market.