Management Of Private Placement Investment Fund

This article discusses the problems in management of private placement investment fund. Private placement in China, by virtue of its flexible investment and withdrawal modes, relatively high investment gain and secrecy, and effective manipulation, has attracted many investors. The securities market was once shocked by such a magnitude as high as RMB 700 million Yuan, which attracted the very attention from security circle and the market. However, private placement, due to its non-openness, has been veiled for a long time. Therefore, there have been no open, accurate and detailed materials to analyze the actual scale, mode of existence and operating risk about private placement, to say nothing of its effective management. The regulating bodies, market celebrities and related governmental departments have appealed time and again that private placement, as a dead spot for market regulation, should be no longer repelled from market management. My basic views on the quick-developing private placement in China are positive encouragement in macro perspective and intensified management in micro perspective, which is the theme to be discussed in this article.The first part of the article discusses the connotation, features and categories of private placement in addition to the four basic forms of existence and gives analysis on the distinction and relations between related concepts such as private placement, assets management, capital trust, and illegal fund raising.The second part of the article introduces the development state of foreign private placement investment fund and discusses the magnitude, development stage andexisting main problems for private placement in our country, followed by discussion on the importance in regulated development of private placement in China and the actual contents for regulated management.The third part of the article mainly discusses the investment operation and management for private placement, including analysis on related parties involved in private placement and regulated operation, on the five investment strategies for private placement, on the investment gain and on the management strategies about investment operation for private placement.The fourth part of the article probes into the risk and risk management for private placement. First is to introduce the risks of private placement via theoretical and empirical analysis, followed by discussion on the risk management for private placement in our country, including introduction to the risk management of foreign private placement, the principles to be observed in risk management and the preventive measures and action towards risks from private placement in our country.The fifth part of the article exemplifies an international case on private placement investment fund-the hedge fund and gives comprehensive empirical study on it, including the connotation, features, categories of hedge fund, the methods, technology and strategies utilized in actual operation, and the management on investment operation of hedge fund.