A Research Of The Developing Mode Of China Hedge Fund Industry Based On The Diamond Model

This dissertation is written in a critical period of financial innovation. Theintroduction of margin trading and Stock Index Futures, the improvement of the financialderivative in type and quantity, and the deregulation of the private equity assetmanagement products, make use of hedging strategies become possible. At present,China hedge fund industry is still emerging. As lacking in public research, thisdissertation pioneers in the field.First, the dissertation introduces the developing history and adaptive changes ofAmerica’s hedge fund industry. The development of America’s hedge fund industry hasexperienced the starting, slow-growth, golden and restructuring periods. The entireindustry has been in a spontaneous development, soon adapted to the changing marketsituation, and become mature along with an indirect supervision. Since the financialcrisis in2008, the U.S. government shows a trend of the direct supervision.Second, the dissertation uses the Diamond Model as a framework to analyze thefour key elements of China hedge fund industry---resources, demand conditions, relatedand support industries, corporate strategy, structure and competition. To extend these fourelements, the dissertation analyzes each element through three sections---opportunities,challenges and policy. In the course of the study,"policy" as an endogenous variable isdeduced by solving a healthy developing mode of the hedge fund industry in China.Finally, based on the Diamond Model and America’s developing experience, thedissertation suggests China should adopt the policy-open and market-leading mode.Creation must be included in regulation, and let the market decide the efficiency inresource allocation. At last, the dissertation offers detailed suggestions based on the mainconclusion.