"On the Construction of China's Institutional Investor System and the Internationalization of Securities Market" Keywords: Securities Investment/Institutional Investors/Securities Market Internationalization/QFII System/QDII System Summary: Institutional investors have gradually attracted attention in the field of China's securities investment in recent years.
important investment entities.
Focusing on institutional investors, this article reveals the international development trend of my country's securities investment field by comparing the legal systems regulating the inflow and outflow of capital in the securities market for institutional investors.
The author believes that the internationalization trend of China's securities market is inevitable; however, the supporting construction of the entire legal system, especially the integration of legal systems for different investment entities, different investment fields, and different levels, still needs to be further improved.
1. The role of institutional investors in the legal construction of China's securities market (1) The role of institutional investors in my country's securities market Institutional investors refer to those who engage in impersonal investment behavior in the sense of securities, professional and social Groups or institutions, which include impersonal institutions that use their own funds to invest in the securities market directly or indirectly with the help of various financial instruments.
1. Institutional investors are of special significance to the development of the securities market.
On the one hand, institutional investors have abundant funds and occupy a large share in securities underwriting and securities brokerage, providing sufficient funds for the expansion of the securities market; on the other hand, institutional investors practice portfolio management and invest in the long term.
Mainly, it helps to curb excessive speculation and maintain the stability of the securities market.
In addition, institutional investors have positive significance in promoting financial innovation and strengthening the supervision of listed companies.
With the continuous development of my country's securities market, the cultivation and improvement of institutional investors has become increasingly important. This is not only conducive to the reform and progress of the capital market, but also helps to deepen the reform of the enterprise system, helps the government to carry out macro-control, and promotes The stability and development of the entire national economy.
2. The role of developing institutional investors in the development of contemporary capital markets is specifically reflected in the following aspects: 1) Developing institutional investors can gather idle social funds, expand social demand for securities, and promote the development and growth of my country’s capital market .
At present, the main trading entities in my country's securities trading market are individual investors. Individual investors are limited by their energy, time, and knowledge, and the costs they pay for direct entry and exit of the trading market are very high; the number of individual investors and the funds invested cannot meet the needs of the rapid expansion of my country's capital market. Vigorously developing institutional investors is an effective way to solve this problem. Through their professional services, institutional investors pool idle funds from society and use them, while bringing considerable returns. The vast number of individual investors save time and energy and promote the development and growth of my country's capital market.
2) The development of institutional investors is of great significance to stabilizing stock prices and promoting the stable development of the capital market.
Individual investors mainly focus on obtaining short-term trading income in their investment behavior, and do not pay attention to long-term benefits. In addition, Chinese investors at this stage generally lack investment operation knowledge, and their investments have a large speculative component.
Institutional investors can just overcome this shortcoming. Institutional investors focus on long-term investment returns, have many professionals, extensive business contacts and comprehensive market information, and focus on the analysis and research of the intrinsic value and financial status of the company's stocks. Therefore,
Be able to reasonably utilize trust funds for investment.
3) The development of institutional investors is also conducive to promoting innovative activities in the capital market.
Institutional investors provide various services and implement risk-diversified portfolio management of the assets they own, which will surely promote innovation in financial services, financial products and market transaction methods.
At the same time, the development of institutional investors will also help form a complete supervision system in the capital market.
(2) The role of institutional investors and the improvement of the legal system in China’s securities market. The rise of institutional investors has broken the traditional highly dispersed situation of individual shareholders and has begun to gradually dilute the traditional image of shareholder groups. There are many institutional investors actively participating in corporate governance.
, affects company decision-making, and enables shareholders to transform from "passive shareholders" to "active shareholders", thus triggering theoretical thinking and practice related to institutional investors and corporate governance structures.
1. At present, the potential conditions for establishing a supporting legal system for institutional investors have matured.
First of all, with the deepening of the reform of my country's unemployment, pension and other social security systems, the assets of unemployment insurance and pensions have increased rapidly, which will create a huge demand for securities; secondly, the development of various investment funds has begun. With the increase in per capita income brought about by economic development, private savings will continue to increase, and more funds will enter the capital market through these funds; Thirdly, in order to consolidate their competitive position and carry out business transactions, various corporate legal persons They will also invest in equity securities; Finally, with the development of economic reform practices, China's securities investment industry management talents are growing rapidly. This large number of high-level professionals has laid an important foundation for the development of institutional investors.