The Theory & Practice Of Foreign Investment Funds Regulation And Its Inspiration On China

The paper brings forward a modern framework of China's investment funds regulation, through the study which includes the research of theory,practice, actuality and trend of foreign investment funds regulation, and the evolution of China's investment funds.In chapter 1, through tracing the brief history of world investment fund industry, the writer made a systematic classification to the various funds, which according to a new sorting system. The new system includes four levels. The first level distinguishes funds between public offering and private offering; the second level between securities investment and industry investment; the third level between open type and close type; the fourth level between contract model and company model.In chapter 2, by analysis to the viewpoints on regulations of western scholars, the writer has concluded that most of them think market must be regulated, because market itself often failure caused by non-perfect competition, exterior nature and asymmetry, etc. The governmental regulation is the conscious response to the market failure. But the governmental regulation has its own inherent bugs such as high cost, policy rigidity, lag reaction and clan benefit. That is called government failure. One choice to overcome the government failure is that we strengthen government regulations based on market mechanism and sufficiently exert the function of market self-discipline organization. Fund price has a strong tendency err from its value, because the products and market of fund has a characteristic of high exterior and info asymmetry. If we want the market mechanism in effect and improve the efficiency of fund market, we should put a moderate regulation on the funds.In chapter 3 and chapter 4,we focus on the foreign investment funds regulation. The regulation on the public offering funds is the main concern matter, but that doesn't presume the private offering funds excluded from the regulation system. Considering the differences of regulation manner and means between public offering funds and private offering funds, the writer take another chapter to study for the regulation on private offering funds from the research of regulation on public offering funds that is the main work.The foreign public offering funds have been living over 100 years. Summarizing the experience of funds developed countries, we can conclude as below:...