Qualified investors System and Chinas Capital Market Development.doc

 PAGE \* MERGEFORMAT 6 Qualified investors System and China’s Capital Market Development [Abstract] This paper demonstrates the establishment of China’s capital market system, the need for qualified investors, described the importance of foreign experience in the establishment of the system, combined with our development of the system of qualified investors, the status quo, pointing out that the system to speed up the construction of qualified investors to help capital markets healthy development. [Keywords:] qualified investors, capital market risk, Since 1990, China’s stock exchanges since the resumption of China’s capital market has achieved rapid development, innovation and continuous improvement of the system, the public’s growing enthusiasm for investment in the stock market’s role in China’s economy has begun to show. At the same time, China’s stock market, there are still twists and turns, inadequate financial instruments, and other issues, system development lags become an obstacle to the development of capital markets, an important reason. Based on these problems, this paper argues the system to establish the need for qualified investors and overseas experience of Enlightenment. ‘Qualified Investors’ system, simply put, is according to different risk tolerance of investors to provide differentiated products and services, and establish a monitoring system adapted to this arrangement. Under the system’s ultimate goal is to protect investors, to avoid the investors to buy beyond their risk tolerance products. Popular terms, is the ability to ensure that investors do buyers conceited system. First, to establish the need for a system of qualified investors Economic theory tells us that the risk of investors should be themselves. But in social reality, the government needs for the maintenance of social stability, there is often implicit guarantees to investors. In China’s current stage, the ongoing stock market decline led to such phenomena as inves