China made its first contribution to the development of the world economy in the pre-modern era as a technological leader and innovator. Formalized policies, state monopolies and poor regulation have hindered China's economic growth and development for many years. With the arrival of institutional investors in the late 20th century, structural changes in all branches of the Chinese economy began. The beginnings of the 21st century are marked by the active implementation of planned strategies that involve changes in regulatory policies and market controls. In 2003, the Chinese government dramatically opened the way for China to further develop its financial system, allowing foreign institutional investors (FDIs) to invest in the Chinese securities market. Insurance and investment funds markets are among China's biggest successes today. One of the most important institutional investments in the Chinese financial market is mutual funds, as they promote the value of the concept of investing to the public sector and optimize the structure of investments in the Chinese stock market. Due to the great potential for diversification of risks and safer investments, the development of the Chinese investment market is of great importance for the local as well as the global economy.