The Necessity Analysis on Strengthening the External Governance of China's Securities Investment Fund

Fund governance is to seek the balance state through rational allocating the rights,obligations and responsibilities among all the fund's parties.Because of lacking the stakeholders participation in the fund's external governance,it can not really protect the interests of fund investors just focusing on the contractual-type fund's internal governance.Therefore,it needs strengthening and improving the fund's external governance to optimize the fund's governance structure.We should give full play to the external supervision and restrain of these fund's core stakeholders which include the custodian banks,the fund rating agencies,other intermediary agencies,and fund industry regulators,in order to achieve the purpose of protecting the interests of fund investors.