Research on Operation of Small Town Investment Fund in China
|School||Harbin Institute of Technology|
|Course||Management Science and Engineering|
|Keywords||small town investment fund machenism of collection machenism of investment machenism of fund exit project risk management|
The industry investment fund (IIF) is a new emerging thing in our transforming financing and investment market. It is the financial system that is not only a new type of instruments of investment, but also a kind of innovative financial system which can speed up industrial development and thus overall economic development. As a kind of IIF, Small Town Investment Fund(STIF) to be used specially in supporting the economic development of small town and it is the investment fund established for financing of industry development. Economic development means that the changes occurred in the structure of economy, society and politics, along with the enhancement of output. The end of sellers market marked that China’s economy must switch from seeking for economic growth to seeking for economic development and upgrading the quality of economic growth. It is, therefore, imperative for China to adjust and escalate its economic structure. The emerging economic forces need to be nurtured and the relatively declining ones need to be regenerated, during which China needs supports from financial systems. Under present situation, China has been building the harmonious society, taking finance harmony as a key part. To be township is a long term goal of China agricultural economic development and the max problem in the process of being town is capital shortage. Without financial innovation, financing and investment problem can not be solved which will lead to the fact that finance harmony can not be realized and thus the harmonious society can not be improved. While the government intervention has proved to be inefficient, commercial banks haven’t enough courage to get involved, STIF evolved to be a new commercial fund to expedite parturition or foster the industries of small town.The paper keeps up with the theme of industry investment fund, and develop with the process of it. the The paper consists of 3 parts, totaling 6 chapters. The first part, Chapter 1 to Chapter 2 is the foundation of the paper which defines the cause of topic choosing, the connotation of STIF, the environment of STIF development and the probability of developing STIF at present situation. The second part, Chapter 3 to Chapter 5 is the core of the paper which analyzes the operation mechanism of STIF, including the STIF procedures, fund raising, modes of exit, methods of appraisal of the investment and risk control. The final part, Chapter 6 discusses the deep reason of difficult existed if developing STIF in China as well as proposes the strategies and suggests the policies for the development of STIF. This paper also explores some Innovation such as the suitable organization mode and type of STIF and its operation mechanism as well as Item risk management.The paper brings forward the concept of industry investment fund with creativity with the aim of profound conception.Meaningwhile it discusses about the organization mode ,machanism and item-risk supervisor of industry investment fund.