Research On The Development Of Open-end Fund Registration Outsourcing Business In CSDC

Fund Company has been facing the relentless competition from peers,other fund substitutes and financial institutions which are potential access to the market since they are formed.In order to directly improve the operating conditions and create profits,fund company need to know how to put the limited resources into the investment management business which is the key and core business.In 2014,the Asset Management Association of China(AMAC)announced "The Services Guidelines for Business Outsourcing(for Trial Implementation)",the provision of article 13 is that fund manager may entrust outsourcing agency to handle the registration of fund shares.It means fund registration outsourcing business services market is opened from the regulatory level.The pilot of the private fund's share registration outsourcing will be experienced in the outsourcing registration of public fund share.This paper takes “China Securities Depository and Clearing Corporation Limited(CSDC)“ as case study object,whom is the first company to develop open-end funds registration outsourcing business services,mainly through the theoretical analysis and comparative analysis research method,to research the problems that arise in their development in this services,analyze the crux of the problems and propose solution.Through the research of CSDC's outsourcing service,the paper explores the development trend of fund operation outsourcing business in China.First of all,this paper analysis the present situation of the fund industry and its operating,which expounds the competitors' advantages and characteristic,structure of fund company's profit and the structures of the products,which lead to increase cost pressures and operation pressure.Secondly,it introduces the outsourcing business' s characteristics,the development and the existing problems,by studying the classical theories and methods,such as enterprise transaction costs,the division of labor and economies of scale and scale economy,and SWOT analysis method,which provide theoretical basis supporting of this paper.And then this paper introduces the US development characteristics by comparing the difference between US and China,with investor behavior content,types of business services,and TA outsourcing agency.Finally,through the empirical point of view,it analyzes the characteristics of US registration outsourcing business which is fit in China.Combined with the existing problems of CSDC,this paper customized the development strategy,which put forward a train of thought on Chinese open-end Fund outsourcing business.The research shows that the CSDC has its own unique advantage in term of cooperation channels and fund settlement,but in the rapid innovation and rapid development market environment,CSDC can't rely on the current TA system and business model to maintaining the market share.Therefore,CSDC need to change the existing business model,realize the new market situation by verities of outsourcing agency and customize outsourcing services,and give full play to their strengths,schedule and consolidated the service on the platform in advance.In terms of risk prevention,unified fund registration service platform should able to ensure the accurate and complete transaction of all funds,highly reducing the systemic risk;In terms of cash settlement,we can give full play to the advantages of the CSDC in the settlement of funds,which can greatly improve the efficiency of capital usage and reduce the cost of delivery;In terms of profitability,through multi-level access,flexible charging method,it can effectively supplementary platform's service charge.Even though fund products need innovation,fund registration business needs personalization and flexible service,CSDC can still become the industry benchmark,leading the development of the fund registration business,becoming one of the most important aspects of the normal operation in fund industry by these explorations.