Legal Research On Offering Of Privte Offering Fund In China

Private equity funds usauly raise fund through non-open means from a small number of certain special investors,are often exempt to review. In the process of setting up and distribution of private equity fund, the offering is very important and has a significant impact on the success of distribution and the operation of private fund. At the end of 2003,in the process of legislative scrutiny of "Securities Investment Fund Law" ,the content of private equity fund which had been long discussd had been deleted, so our private equity-related legislation is currently significantly behind the development of capital markets. The raising of Private equity funds has no legal basis for enforcementin presently.Although some related regulations can be found in many kinds of legal texts, but are not pertinency, practicability and maneuverability.Scholars who research private fund focused largely on Economics and Finance, study from legal point on private equity funds prensently weaked. When it comes to the raising, it even more inadequate, theoretical discussion and discourse depth need to be strengthened.Private equity financing originated in instruments innovation in the U.S. capital market, in the Second World War has made considerable progress, become a major force in global financial markets. The advanced legal system in American have a vital role for the development of private equity funds. Japan and China Taiwan attracted a positive reference. Currently, private equity has become an important part of the capital market in China , to maintain financial stability, to law the financial risks, improvement the legislation on private equity is increasingly important. The raising of private equity funds are different from the securities, and also have a larger difference with the public offering funds, has distinctive merit in the issue and distribution procedures.The offering is limited to a small number of specific investors and non-public way. Legal construction of private equity funds in China firstly shoud be strictly defined by recognized standards.Second, the object should raise targeted restrictions, so that ordinary investors can be away from private equity funds. In addition, the exemption for the auditing of private equity funds should be vigorously learn the advanced experience of the United States and other developed countries, so that private equity funds in the capital market can play its flexibility characteristics. When it comes to the disclosure of information in the private equity, the special circumstances of China's capital market shoud be concerned so that to really protect the interests of investors.