1. Germination and Initial Stage
China’s fund industry really started in the 1990s. Under the premise that a series of macroeconomic policies were introduced one after another, China’s fund industry has become increasingly popular. Called, finally walked to the front desk.
In August 1991, Zhuhai International Trust and Investment Company initiated the establishment of Zhuxin Fund, with a scale of 69.3 million yuan. This is the earliest domestic fund established in my country. In October of the same year, Wuhan Securities Investment Fund and Nanshan Venture Capital Fund were established with the approval of the Wuhan Branch of the People's Bank of China and the Shenzhen Nanshan District People's Government respectively, with scales of RMB 10 million and RMB 80 million respectively. However, the introduction of the concept of investment funds into our country in concept and practice can be traced back to 1987, when the People's Bank of China and China International Trust and Investment Corporation pioneered the fund investment business in China, and cooperated with some foreign institutions to launch a national fund for overseas investors. Fund, which marks the beginning of the investment fund business in China. In January 1989, the first Chinese concept fund, the Sun Hung Kai China Fund launched by Hong Kong Sun Hung Trust Investment Fund Management Co., Ltd., was established. After that, a number of overseas funds were established one after another, which greatly promoted the start and development of China's investment fund industry.
Awakening of the Sleeping Lion - Funds in China (2)
2. Rapid Development Stage
In 1992, China's investment fund industry developed extremely rapidly. That year, 37 investment funds approved by the People's Bank of China at all levels were launched, with a total scale of US$2.2 billion. In June of the same year, my country's first corporate closed-end investment fund, Zibo Township Enterprise Investment Fund, was approved and established by the People's Bank of China. On October 8 of the same year, Shenzhen Investment Fund Management Company, the first fund management company officially approved in China, was established. By 1993, there were about 70 funds of various sizes in various places, with a face value of 4 billion yuan. Funds that have been established have entered the secondary market and begun to circulate. This period was the initial stage of fund development in my country. In June 1993, nine Chinese financial institutions and the Boston Pacific Technology Investment Fund of the United States established the Shanghai Pacific Technology Investment Fund in Shanghai. This was the first Sino-foreign joint venture Chinese fund established in my country, with a scale of US$20 million. In October, three funds targeting the education sector, Jianye, Jinlong and Baoding, were approved for establishment. In August 1993, Zibo Fund was publicly listed on the Shanghai Stock Exchange. With this, my country's funds entered the stage of public listing and trading. In the early 1990s, my country's investment funds have achieved remarkable results both in terms of quantity and capital scale. From the introduction of policies to the emergence of Sino-foreign joint venture funds to the listing and trading of funds, my country's investment funds have come a long way. The road to rapid development has made great progress.
Awakening of the sleeping lion - Funds in China (3)
3. Adjustment and standardization stage
Since my country's funds have developed rapidly from the beginning , its establishment and operation are highly arbitrary, and there is a disconnect between development and management. Adjusting and standardizing my country's fund industry has become a top priority for the financial management department.
On May 19, 1993, the People's Bank of China issued an emergency notice requiring provincial branches to immediately stop the irregular issuance of investment funds and trust benefit bonds. After the notice was issued, the People's Bank of China at all levels implemented it conscientiously and did not approve any further funds. Instead, they focused on the standardization of already established funds and the issuance of approved funds.
At the same time, the fund trading market has also made great progress: on March 7, 1994, the Shenyang Securities Exchange Center and the Shanghai Stock Exchange were put into trial operation online; on March 14, the Southern Securities Exchange Center and the Shanghai and Shenzhen Stock Exchanges simultaneously Stock exchange network. On November 29, 1996, Jianye, Golden Dragon and Baoding Funds were listed on the Shanghai Stock Exchange. The networking between some stock exchange centers across the country and the Shenzhen and Shanghai Stock Exchanges has enabled some funds that were originally limited to local areas to enter the national market through the Shenzhen and Shanghai Stock Exchange networks. It is not difficult to see that a national trading market has begun to take shape, and its market performance has become known and familiar to more and more investors, opening up the development path of China's investment fund industry.
Awakening of the Sleeping Lion - Funds in China (IV)
Before the emergence of new funds, 75 funds were established across the country, with a total fundraising scale of 47 fund certificates 7.3 billion. There are 25 products listed and traded on the two stock exchanges, accounting for 3% of the products listed on the two exchanges. The market value of the fund reaches 10 billion yuan. Among the 25 funds, 7 have a scale of more than 200 million yuan, 7 have a scale of 100-200 million yuan, and 11 have a scale of less than 100 million yuan. In addition, there are 38 funds listed in securities exchange centers across the country, including 9 in Tianjin and 10 in the south. , 12 in Wuhan and 7 in Dalian.
At the end of July 1994, the China Securities Regulatory Commission and relevant departments of the State Council launched new policies for the stock market, proposed to develop my country's independent investment funds, cultivate institutional investors, and pilot Sino-foreign joint venture fund management companies, and gradually attract foreign investors. To invest in the domestic A-share market, the fund industry fund contacted and negotiated with the overseas securities and fund industry to design and apply for a number of Sino-foreign joint venture fund plans. As of 1996, there were hundreds of various types of funds pending approval in my country. However, due to the lag in the law, the development of funds has basically come to a standstill.
On March 23, 1998, Kaiyuan and Jintai securities investment funds were publicly offered and listed, which brought the development of closed-end securities investment funds into a new process.
In 1998, my country's government established the first batch of five closed-end funds: Fund Kaiyuan, Fund Jintai, Fund Xinghua, Fund Anxin and Fund Yuyang.
Awakening of the Sleeping Lion - Funds in China (V)
4. Steady Development Stage
By 2001, my country had 14 fund management companies. There are 34 closed-end securities investment funds. In September 2001, with the approval of the management, Huaan Fund Management Company established my country's first open-ended securities investment fund, Huaan Innovation, and the development of my country's fund industry entered a new stage. In 2002, open-end funds experienced extraordinary development in my country, and their scale expanded rapidly. By the end of 2002, the number of open-end funds had soared to 17. The promulgation and implementation of the Securities Investment Fund Law passed by the Standing Committee of the National People's Congress on October 28, 2003 is another important milestone in the development history of China's fund industry and capital market, marking that my country's fund industry has entered a new era. stage of development.