Study on the Establishment of a Long―effect Mechanism for China's Securities Inv

Abstract. Investor education is not only one of the most important and fundamental institutional constructions at capital market， but also an important part of the cultural construction of capital market. At the present stage， the long-effect mechanism for investor education is not only a demand of China's securities market on its healthy development， but also an objective reality that China's investor education is necessary to confront with. For these reasons， it is necessary for China to deepen investor education， expand investor education platform， strengthen risk prevention， and take initiative to build up a multi-level investor education system， and ultimately establish and improve a long-effect mechanism for investor education， so as to ensure the stable， harmonious and order development of China's Securities market in futures.

Key words： Securities Investment； Education； Long-effect Mechanism

1.Introduction

IOSCO thinks that investor education refers to a kind of social activities， which is implemented and oriented at individual investors with explicit goals， plans， organizations and systems. It is designed for informing the investors of their due rights and protection approaches and thereby making an enhancement to the quality of the investors through imparting investment knowledge and advocating rational investment ideas. Furthermore， investor education is allowing investors to learn knowledge in finance， developing professional skills in investment， and making an enhancement to the "physical health" of the investors at securities market， and thus building up a good "physical body". Only in such a way， the self-awareness and self-protection abilities of the investors in legal rights and interests can be continuously improved at securities market， and simultaneously their ability in risk aversion can be increased greatly.

However， in China， securities investor education is in its infancy at present. Therefore， in comparison with the capital market's steady development， the continuous market expansion and the rapid growth in the number of investors， there is still a great difference between China's securities investor education and overseas mature market investor education in terms of development breadth and depth.

2.Characteristics of China's Securities Investors

2.1A High Proportion of New Investors Lacking Awareness of Risk

In recent years， the number of investors opening new accounts increased very rapidly. From 2012， there are about 100，000 new investors to enter securities market every day at average； the number reached more than 180，000 a day at the maximum. However， the investors newly entering the securities market own educational backgrounds at different levels， and also they come from a variety of industries. What is worse， some new investors do not have fundamental knowledge of financial planning and investment， and also a small part of new investors almost do not think that there is a possibility for them to suffer a loss.

First of all， increasingly more funding and manpower supports can be provided for the existing investor education activities of public organizations.

Second， private investor education foundations and public organizations can be advocated and cultivated according to the practices in Europe and America， and also provide them with supports in tax and policy and help them broaden the sources of funding.

Third， high importance is necessary to be attached to investors' risk identification and rational investment， investment information processing， protection and maintenance of rights and interests， etc.

Fourth， it is necessary to make an enhancement to the early investment planning education for young people， and also expand the popularization of investor education in more and more places.

Currently， it is urgent for China to have an investor educational school like the New Oriental School， in which teaching materials are in diversification， consideration is given to the educations of both old and new investors according to the actual conditions， and a proper concept of securities investment should be promoted and popularized.

The establishment of investor educational school will become highly popular among a wide range of investors， because the learning exchanges between investors and securities providers or among investors are effectively promoted when the fundamental knowledge of securities is being popularized.

Therefore， an effective platform is provided for business departments to help clients solve problems in the actual operations in time， give them real-time answers to questions， and remind them of possible risks.

References

[1]Investor Education Is Activated by Long-effect Mechanism Completely. Shanghai Securities News， 2009-3-23.

[2]Enhancing Investor Education： Creating a Healthy Investment Environment for China's Capital Market. Shanghai Securities News， 2010-12-24.