Shang Fulin, chairman of China Securities Regulatory Commission (<a >CSRC</a>), said Sunday that boosting securities investment fund was a strategic policy that the commission would uphold.

The securities investment fund would backbone the development of China's securities market, Shang said.

Shang spoke at a securities fund seminar held from Friday to Sunday in Zhuhai. He said China needed to urgently upgrade its securities investment fund sector to support national economic development.

The fund would serve to activate the market transaction, direct investment and prevent excessive market speculation, he said.

A healthy fund sector would also help to maintain market stability and improve the quality of China's listed companies.

Though hampered by inappropriate structure, poor management of risk and lack of experience, China's fund sector still had much potential for development in the coming two or three decades, Shang predicted.

He said the commission would focus on bringing about China's first securities investment fund law, and studying issues of corporate restructuring for China's various fund companies.

(People’s Daily September 15, 2003)