Huang Liping of CFA: there are still many acts in the fund industry that violate the fiduciary duty

 Huang Liping of CFA: there are still many acts in the fund industry that violate the fiduciary duty

Huang Liping, Deputy Secretary General of the China Securities Association, said on November 28 that the development of China Southern fund industry was facing difficulties in the development of China Southern fund industry.

One is the lack of long-term funds. In Chinas public private funds, the main investors are still natural persons and general industrial and commercial enterprises. Restricted by the term structure and risk preference of investors, it is difficult for funds to realize long-term and strategic allocation.

Second, the governance system is not perfect. There are still many behaviors that violate fiduciary obligations and fund laws in the industry. It is a long way to go to cultivate trust culture and optimize industry governance.

Third, responsibility investment is underdeveloped. In the practice of fund investment, there are few indicators and methods reflecting the direction of civilization and progress such as environment and society, and the efforts to promote corporate governance are not effective enough.

Huang Liping said that the China Securities Investment Fund Association is holding a series of seminars to actively investigate and study different business types, guide and restrict industry institutions and employees to faithfully perform their fiduciary duties, do a good job in investor suitability management, interest conflict management, fair trade management, information disclosure management and risk control, and safeguard the best interests of investors.

At the same time, we should promote the system construction that is conducive to the formation of long-term capital and long-term investment culture. China is in the rising period of pension plateau and needs to continuously improve pension reserves; at the same time, it is also in the breakthrough period of innovation and development, which requires a large number of long-term capital that is willing to take risks.

Since 2014, Chinas private equity funds, especially equity venture capital funds, have developed unprecedentedly. Huang Liping disclosed a set of data. As of the end of the third quarter of this year, the registered management scale of equity venture capital funds has increased 11 times, reaching 10.96 trillion yuan, of which the management scale of venture capital funds has increased 13 times to 1.54 trillion yuan.

Equity venture capital funds are investing 41900 unlisted and unlisted enterprises, with a capital of 5.53 trillion yuan; among them, the venture capital funds are investing in 20800 enterprises with a capital of 709.3 billion yuan. Among the unlisted and unlisted enterprises, small and medium-sized enterprises accounted for 78.8%, and high-tech enterprises accounted for 30.9%. In the first three quarters of 2020, the new investment of equity venture capital fund is 905.4 billion yuan, including 160.1 billion yuan of venture capital fund. Among the enterprises listed on the science and technology innovation board, nearly 90% of the enterprises obtained private equity venture capital investment fund investment before listing, and the equity investment principal reached 70.4 billion yuan, equivalent to 40% of the total amount of initial raised funds of the invested enterprises.

Source: interface news Author: Zhang Yi, editor in charge: Wang Xiaowu_ NF