A spokesman for the SAC said that the council is a self-disciplinary organization of China's investment fund industry. Its purpose is to protect investors' legal rights and interests, serve as a bridge between the government and members of the council, and promote the healthy and stable development of the securities investment fund industry.

Ma Qingquan, honorary director of the council, said that the establishment of the council is a significant event in the history of China's fund industry, it will play a critical role in promoting the healthy development of the securities market.

He said that the council will carry out investigations and research activities, formulate plans for the development of the fund industry, improve the industry's self-discipline mechanism, establish employee training and appraisal systems, protect a fair competition environment and promote international exchange and cooperation.

Since 1997 when China promulgated provisional procedures for securities investment fund administration, the country's investment fund industry has made huge developments. So far 36 standardized investment funds have been listed, with an aggregate volume of 58.4 billion units and a net asset value of over 70 billion yuan (US$8.5 billion).

(Xinhua 08/29/2001)