What does a fund company do? What is the nature of fund companies?

A fund company refers to an enterprise legal person established in China with the approval of the China Securities Regulatory Commission and engaged in the management of securities investment funds. The board of directors of the company is the highest authority of the fund company. The promoters of fund companies are institutions engaged in securities business, securities investment consulting, trust asset management or other financial asset management. People usually refer to funds mainly as securities investment funds. There are three main analysis methods of securities investment: basic analysis, technical analysis and evolution analysis, in which the basic analysis is mainly applied to the selection of investment objects, while the technical analysis and evolution analysis are mainly applied to the temporal and spatial judgment of specific investment operations as an important supplement to improve the effectiveness and reliability of investment analysis.

Nature of fund companies: fund companies in a narrow sense only refer to fund management companies (Public Offering of Fund companies) that can engage in securities investment fund management business with the approval of the CSRC; Broadly speaking, fund companies are divided into Public Offering of Fund companies and private fund companies. Public Offering of Fund's business and personnel activities are supervised by the CSRC, and its employees belong to the fund industry; Private equity fund companies are not regulated (the new fund law may bring private equity funds under the supervision of the CSRC). From the organizational form, fund companies are divided into corporate fund companies and limited partnership fund companies. In practice, all Public Offering of Fund companies are corporate fund companies, and private fund companies adopt both corporate system and limited partnership system.

Securities investment funds (commonly known as funds) are products issued by fund companies. Among the links related to fund issuance, management, custody, registration and sales, those related to fund managers (fund companies) include fund issuance and management, registration and partial sales (direct sales). What needs to be emphasized here is that the fund property is independent of the inherent property of the fund manager. That is to say, on the one hand, the fund company shall not classify the fund property as its inherent property. When the fund company goes bankrupt or collects debts, the fund is not included; On the other hand, investors buying funds do not belong to buying assets of fund companies.

Establishment principle

The fund company is established in accordance with the company law. According to Articles 2 and 3 of China's Company Law, a company is an enterprise legal person in the form of a limited liability company or a joint stock limited company established in accordance with the Company Law. Article 6 of China's "Company Law" stipulates in principle that those who meet the conditions for establishment shall be registered as limited liability companies or joint stock limited companies respectively by the company registration authority. Article 93 of the Company Law stipulates that if a joint stock limited company is established by offering shares to the public, it shall also submit the approval documents of the State Council Securities Regulatory Authority to the company registration authority. The relevant laws and regulations regulating the operation of fund companies are based on the People's Republic of China (PRC) Securities Investment Fund Law and the Measures for the Administration of Securities Investment Fund Management Companies, supplemented by the People's Republic of China (PRC) Trust Law and the Interim Measures for the Administration of Private Equity Investment Funds.