Top Leadership  

Hu Jintao

Wu Bangguo

Wen Jiabao

Jia Qinglin

Li Changchun

Xi Jinping

Li Keqiang

He Guoqiang

Zhou Yongkang
Other Central Leaders
Communist Party of China CPC>>News
10:12, June 27, 2012

China revising funds law to protect investors (2)
If the court returns a guilty verdict, Li's case will be the largest rouge trader scandal in China's securities history and demonstrates the dangers of a loose regulatory environment.

According to Wu, 69 fund management firms around China managed total fund assets with a net value of 2.2 trillion yuan (338.4 billion U.S. dollars) as of the end of 2011, 8.5 times the net value of fund assets in 2003.

The market value of securities investment funds accounted for 7.7 percent of negotiable market value of the Shanghai and Shenzhen bourses as of the end of 2011, making it the most important institutional investor in China's security market.

The draft amendment also introduces two new types of fund organizations -- unlimited liability fund and board fund -- in a move to better protect investors' interests.

Managers in an unlimited liability fund will bear unlimited joint and several liability for the fund's debts. In a board fund, a board will be established through a fund shareholders' assembly as a standing organization to supervise fund managers.

"The legislature effort for the draft amendment will introduce specific and strict regulations over privately offered funds and improve environment of funds and security markets," said Hu Lifeng, general manager of the funds research center under China Galaxy Securities.

The draft law will also help ease investor's worries and concerns about the uncertaintiues of how investors behave under privately offered funds, Hu added.
【1】 【2】

(Editor:张茜、姚春)
Tell a friend Print friendly Version Print friendly format Save to disk Save this
Related News


Copyright © 1997-2006 by www.people.com.cn. all rights reserved