Legal Problems Of Privately Offered Fund In The International Capital Market

September 2000 an article in Finance and Economics, which disclosed the inside story of fund, and pulled most attraction of the public. In 2001, under the direction of Xia Bin, a famous economist, a report named Investigation on China Privately Offered Fund was publicized. After that, the problem of privately offered fund stood out, and many scholar discussed hotly about it. Because of the size of privately offered fund in our country, we had to think much of it. But so far from now, we have not a law which adjusts the privately offered fund, even the conception of it.After China's accession to WTO, our country should open our capital market to foreign country, and which will strike our internal capital market. It was obvious to all that the world famous fund, Fund of Tiger and Fund of Quanta, brought great turbulence to international capital market. So, It's very important for our country's legislation on privately offered fund. This law will improve our capital market's stabilization. In Oct 2003 the Securities Investment Fund Law passed. One chapter of this law named Fund of collection from specific people was deleted.This paper sets forth on the conception of the privately offered fund, compares the legislation of different countries, and discusses about "underground privately offered fund" in our capital market. It also comment on the problems of privately offered fund in our capital market at the present time. At last, this article brings forward some suggestion of our privately offered fund legislation. I hope our country will do this as soon as possible, so that we can face the challenge from international capital.