Study On Legislative Suggestions For Hedge Fund Of China

As the financial globalization, the international capital flowing between countries, hedge funds have played a bigger important role in the international financial system. In our country, the government will do its utmost to provide an environment conducive to the development of hedge funds. In jurisprudence, hedge funds legislation is a cutting-edge issue. Information is relatively few and mainly concerned with the reality of hedge fund legislation, the contents and legislation is not detailed. Therefore, The national legislative body should build up a valid legislative and improve the legal system to try to avoid a large impact and possible losses which the hedge funds may caused. This article introduces the concept of the hedge funds, the significance of hedge funds legislative. Studying on the advanced legislative experiences in other countries, the article analyses the reasons and puts forward legislative suggestions. The main content is listed as follows:The introduction mainly introduces purpose and methods of the article.This paper consists of five parts, which begin with stating the background, significance. The first part also introduces the enhancing legislation in favor of capital markets development, protection for investors and the regulator effective supervision, etc.The second part analyses the necessity of hedge fund legislation from the case of Bernard Madoff. This part first reflects legislative bug. After that, the author suggests that the national legislative body strengthen hedge funds legislation preventing the recurrence of similar incidents.The third part is the Hesperian legislative experience and its inspiration to China. Analyses of the United States, Germany, Hong Kong's hedge funds legislative experience demonstrates what we should in our legislation. The hedge funds establishing, the investment restrictions, the manager regulations and the information disclosed and regulations.The fourth part is the status quo of Chinese hedge fund legislation. This part pointed out the main problems of legislation which is hedge funds legal status is not explicit, lacking specific legal qualifications, the fund manager's behaviors lacks supervision.In fifth part the author put forward a few legislative suggestions in view of existing situation. In the conclusion part, the author re-states his opinions on the hedge fund.