By: Sun Zhao Yang
Compiler: http://www.fundcn.org

Awakened the sleeping lion’s — Funds in China (1)

Gentlemen love fortune, but a proper way; Gentlemen love fortune, but also when the rule tactics. — Confucius “The Analects of Confucius”

Youth fiscal only the arrival of Western culture, uphold fiscal ancient oriental culture, Fund as a modern finance and investment, no way, the superiority of its system, the integrity of its content, bound with a variety of financial management together into an effective national uniform way.

China’s Investment Fund is the planned economic system to a market economic system arising from the transition, Compared with developed countries in the West, with a smaller scale, lack of experience and the inherent characteristics. To the development of China’s investment fund market, regulate investment funds management and operation to prevent and defuse financial risks, We need to invest in the fund market with a comprehensive understanding and knowledge, and use foreign investment fund for the development of the successful experience in accordance with international practices in building our investment fund for the development model that allows them to the healthy and orderly development and growth.

1, seed and early stage

China’s fund industry really started in the 20th century during the 1990s, a series of macroeconomic policies have introduced under the premise China’s fund industry long-awaited, finally comes to the front.

In August 1991, the Zhuhai International Trust and Investment Corporation was formed beads letter Fund, the size of up to 69.3 million yuan. This is the earliest establishment of the domestic funds. In October, Wuhan Securities Investment Fund and Venture Capital Fund Nanshan respectively by the Bank of China branch in Wuhan and Shenzhen Nanshan District People The government approved the establishment of scale reached 10 million yuan and 80 million yuan. However, the concept of investment funds from the introduction of the concept and practice of our country should be brought back in 1987. then the People’s Bank of China and China International Trust and Investment Corporation of China opened the first investment fund business precedent, and some foreign institutions for the launch of the overseas investment of state funds, It marks China investment fund business has begun to emerge. 1989 picks up, The first Chinese concept that the new Fund-Trust Investment Fund Management Limited Sun Hung Kai China launched the fund is established, after, a group of overseas funds have set up, greatly promoting China’s investment fund industry in the origination and development.

Awakened the sleeping lion’s — Funds in China (2)

2, the rapid development stage

In 1992, China’s investment fund industry in the rapid development of abnormal, there was people at all levels approved the 37 investment funds introduced, the scale of total 22 billion dollars. In June, My first company-closed investment funds — Zibo Township Enterprises Investment Fund approved by the People’s Bank of China. The same year, on October 8, the first domestic be formally approved by the fund management companies — Shenzhen investment fund management company set up. By 1993, large and small throughout the fund about 70%, the face value of 40 billion yuan. The fund has been set up one after another into the secondary market began to flow. During this period China’s fund for the development of the initial phase. June 1993. 9 Chinese financial institutions and Boston Pacific Technology Investment Fund established in Shanghai, Shanghai Pacific Technology Investment Fund, This is the first one in China to set up joint ventures in China Fund, the largest of 20 million U.S. dollars. October city, and Jinlong Baoding three-oriented education approved the establishment of the Fund. In August 1993, Zibo fund on the Shanghai Stock Exchange publicly listed this as a sign, China Fund entered the publicly traded stage. The early 1990s, China’s investment funds in terms of quantity or in the size of funds, has made remarkable achievements, from the introduction of this policy to the emergence of Sino-foreign joint venture fund, the fund then traded China’s investment funds away a period of rapid development and has made considerable progress.

Awakened the sleeping lion’s — Funds in China (3)

3, adjustment and standardization stage

Due to China’s fund from the beginning of a trend of rapid development, its creation and operation of the randomness strong, There divorced from the development and management of the situation, adjust and standardize China’s fund industry as a financial management of the moment.

May 19, 1993, the Bank issued an emergency notice asked provincial branches immediately stop standardizing the distribution of investment funds and trust to benefit the bonds. Notice issued after the People’s Bank at all levels conscientiously implemented, has not approved the establishment of any fund put on the experience of the fund has been established and the standardization of the Fund has approved the issuance of work.

Meanwhile, the fund market has made considerable progress : March 7, 1994. Shenyang Securities Trading Center and the Shanghai Stock Exchange networking trial operation; March 14, the South Securities and Exchange Center and Shanghai, Shenzhen Stock Exchange networking. November 29, 1996, Eugene, Jinlong Baoding Fund and the Shanghai Stock Exchange listing. National Stock Exchange in various centers and a network of Shenzhen and Shanghai Stock Exchange some limitations in the original local funds through securities transactions Shenhuwan network access to a national market. It is not difficult to see that the national market began to take shape, with its market performance for the growing number of investors who are familiar with and understand, opened up China investment fund industry in the path of development.

Awakened the sleeping lion’s — Funds in China (4)

In the new fund, the National Fund for the establishment of a total of around 75 fund categories documents collected 47 total size of 7.3 billion. In two stock transactions 25, accounting for two listed species of 3%. Fund market value of 10 billion yuan. 25 fund size of over 200 million yuan of seven ,1-2 7 billion, 100 million below the 11 Furthermore, there are 38 funds throughout the country Securities and Exchange Center, Tianjin, 9, 10 South, 12 in Wuhan. Dalian 7.

By the end of July 1994, the SFC with the relevant departments of the State Council on the launch of a new stock market policy, proposed the development of China’s mutual funds, cultivating institutional investors, the pilot Sino-foreign joint venture fund management companies, gradually attract foreign investment fund domestic A-share market, the fund industry funds and overseas securities fund industry liaison arrange with, Design and the declaration of the number of Sino-foreign joint venture fund programs. As of 1996, China’s information on the various applications Fund has reached hundreds, but the legal delay, Fund basically stop at the state.

March 1998 23, Kaiyuan, Jintai two securities investment funds will be issued to the public listing This closed securities investment funds in the development of a new process. 1998 China has established the first group of five closed-end funds : Fund Kaiyuan, Jintai Fund, the Fund Xinghua. On Shun Fund and the Fund Yuyang.

Copyright Fund China 2009.

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