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On Research Of Legal Orientation And Regulation Of Private Placement Fund In China

Posted on:2006-04-18Degree:MasterType:Thesis
Country:ChinaCandidate:W WeiFull Text:PDF
GTID:2166360152485062Subject:Law
Abstract/Summary:PDF Full Text Request
As the development of the economy and continuous accumulation of social wealth, new financing tools have been created so as to satisfy the investment trend and the ability of risk endurance of different investors, one of which is the private placement fund. According to relevant investigation, there is a large amount of private placement fund in the Chinese securities market now. Due to the lack of rules of its legal nature, operation pattern etc, such private placement fund exists in disguised forms of various kinds without any rules of laws and regulations, which exerts negative influence on the stable development of the Chinese securities market. The first part of this paper made brief introduction on what's private placement fund. Because there's no legislation as to private placement fund and no clear legal definition can be found in foreign legislation, the definition in this paper is only based on the foreign supervision experience. The author classified the securities investment fund into public placement fund and private placement fund according to the difference in ways and objects of collection. The private placement fund discussed therein is private placement fund of securities investment. Compared with those of public placement fund of securities investment, this paper made analysis on the basic characteristics of private placement fund. In the second part, the author discussed about the legal nature of private placement fund through the analysis of the legal nature of securities investment fund. Based on the two theories of the legal nature of securities investment fund and legislation of various countries, the author analyzed some basic principles of the establishment and the operation of securities investment fund and the legal relationship between parities of different forms of fund and concluded that the nature of the legal relationship of securities investment fund is trust system. Furthermore, the legal nature of private placement fund is construed thereby. In the third part, the author made introduction of various kinds of private placement fund in the Chinese securities market and determined their legal nature one by one. Then a comparative analysis is made between private placement fund and other related terms in the Chinese market. The author pointed out the disadvantage of the irregular development of private placement fund in the situation of lack of clear rules of the private placement fund in the Law of Securities Investment Fund and other related laws and regulation and further indicated the necessity and significance of regulating the private placement fund in China according to law. In the final part, based on the country reality, the author presented her own opinions of how to regulate the private place fund, including the source of law, the principles and the detailed regulation etc of private placement fund. In the author's opinion, the private placement fund, one of the collection forms of securities investment fund, is a term counter to the public placement fund whose legal relationship is trust. The existence of private placement fund in China has offset the defects of the legally existing public placement fund of securities investment thus shall be an inevitable outcome of the development of the securities market. Not all kinds of private placement fund shall be prohibited. The market economy of financial capital shall also follow the market principles and respect the market need. The compression of the necessity and creation of market will only result in more and more underground activities and breach of laws and regulations. However, financial goods cannot be let alone without regulation. In order to further develop the private placement fund, it shall be ruled by laws and regulations with both oppression and leading. The regulation of private placement fund in China shall be based on the legal relationship of trust together with characteristics of other legal relationships. The regulation of private placement fund in China reflects a retroactive recognition of its legitimacy and the respect to market selection whose aim is to fully bring out its positive effect and limit its negative influence. It will not only benefit the balancing of market development and maintain the market stability but also promote the maturity and improvement of the system of securities fund market. It is hoped that the Law of Securities Investment Fund will gradually pay attention to the issue of private placement fund through its improvement and establish the regulation system of private placement fund which conforms to not only the country reality but also the international customs as soon as possible.
Keywords/Search Tags:Private Placement, Securities Investment Fund, Legal Relationship, Regulation
PDF Full Text Request
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