The Legislation Supervision Of Private Fund In China

In recent years, private equity fund in the securities markets are playing an increasingly important role. Due to a lack of securities laws and relevant legal regulation, in practice, there are a large number of irregularities, hindered the development of the securities market. Recently the law of securities investment funds is under modify, calls for the legislature of private fund are growing. Cooperate with the plans of sunshine private fund; it is necessary to establish a systematic monitoring system for PE funds. In establishing the system of issue, there are two key issues, include (1) standard of investors and (2) the way of private offers. On defining the accredited investors, natural investors have to conform to the provisions of the minimum investment quota, and there is no unqualified investors could join into the PE investment. This view is different from the current provisions of the other countries and regions. The provisions on the resale restrictions of the PE funds share, could somehow reference to the Securities Exchange ct of Taiwan. According to different conditions, to make different provisions on holding period, the number of resell shares and the frequency of resale within a certain period. At the mean time, in the aspects of disclosure of information, legislation should promote the establishment the internal information and communication platform between issuer and manager with investors.