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Research On The Legal Issues Of The International Supervision Of Sovereign Wealth Fund

Posted on:2012-05-02Degree:MasterType:Thesis
Country:ChinaCandidate:Y XiaFull Text:PDF
GTID:2166330335458103Subject:International law
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Currently, there is a new tendency of an active management of foreign currency reserves and many countries have build their own sovereign wealth fund based on the surplus of their foreign currency reserves. In order to diversify the investment in the international financial market, the approaches have been changed from the purchase of government bonds or shares into direct investment. In the 2008 financial crisis, Sovereign Wealth Fund has played an extremely important role in the Western capital market. However, many Western countries worried about an inevitable control from the owners of the Sovereign Wealth Fund over their own domestic policies and have used different regulations to limit the investment from those funds. The lack of an overall international supervision is a hazard to the international investors, which not only brings the investment protectionism, deters the free capital movement and harms the fair trade environment. It is negative for the growth of the Sovereign Wealth Fund. As a result, an international supervision on Sovereign Wealth Fund is very necessary.Based on the discussion of international supervision on Sovereign Wealth Fund, this essay could be summarized into introduction, body and conclusion. And there are four chapters in the body part:Chapter one is the explanation of Sovereign Wealth Fund. It introduces its origin and development, discusses its different definitions and basic features, and analyses the legal aspects. Finally, through the comparison of Sovereign Wealth Fund with relevant concepts like public pension funds and foreign currency reserves, analysis of the concept.Chapter two is the current supervision of the Sovereign Wealth Fund. It analyses the supervision from three different angles: unilateral, bilateral and multilateral. The drawbacks of each mode are also discussed in this chapter.Chapter three is the analysis and recommendation on the international supervision, which is also the key part in this essay. Based on the discussion of chapter two, it explains the necessity and possibility of the international supervision. Through the exploration of current failure in achieving an overall international supervision, the recommendations are focused on the aspects of the principle, institution, target and legal liabilities. It also points out that the application of international supervision should take a gradual approach.Chapter four is the lessons for China. Inspired by the way Singapore dealing with its Sovereign Wealth Fund, China is recommended in this essay to take an active role in the international organization through the development of China Investment Corporation and supervision of foreign Sovereign Wealth Fund in China.
Keywords/Search Tags:Sovereign Wealth Fund, International Supervision, Santiago Principles, China Investment Corporation
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