Research On The Investor Eligibility System

Different with the western mature capital market, individual investors is in the largeproportion of capital market participants in our country at current times. AS the lack of theexperience and judgment, they also find themselves difficult to understand complexfinancial products. And now the capital market of our country is in an important period ofchange, in the promotion of encouragement of innovation is the mainly policy of capitalmarket at this time. Based on this market policy, much new and sophisticated financialproducts sure be enter to the market. Face with those financial derivatives which wasdesigned so complicated that even professional institutional investors can not understandthe product correctly, not to speak of the normal investor. In this case, Investors is easy tobe misleading and the unforeseen loss comes, so appropriate protection rules is moreurgently needed. This can limit the securities company free to recommended high-riskproducts to customer which are not suitable in ignoring the needs of customers, in orderto create a favorable financial environment for the stable and rapid development offinancial markets. So we can say that the Investor Eligibility System is an very importantsystem which is indispensable to Financial innovation activities. Carrying out of theInvestor Eligibility System good or bad plays an important role in the success or or failureof the process of deepening the reform and opening to the capital market in China whichworth our high attention and in-depth research.In this context, with the investors appropriate system as the research object, Thisarticle is divided into four parts to do a comprehensive discuss of the system. The firstchapter gives a general introduction to the investors appropriate system which includethree aspects: definition、generation basis and the value of the system. After the reader getsthe preliminary understanding, chapter two will gives a detail contrast in he legislativestatus and subsequent regulatory between our country and developed countries oversea, soas to let the readers know the difference between them. Chapter three will put forwardexisting problems in our country, and with a real case for analysis in order to give a revealin a objective and direct way of the investor eligibility system in China.The last chapter, according to the third chapter of suit the remedy to the case, put forward the improvementscheme. Through the analysis of present situation description, instance, and anintroduction to the system of appropriate institutional investors, this article can certainlyachieve the purpose of causing social protection to investors, to the attention of theappropriate institutional investors.