On Construction Of Legal Establishment Of Private Placement Fund In China

Private placement Fund is one kind of investment funds, which is not through strict registration and collect capital in several invest institution and rich individual clandestinely. Comparing with public placement Fund, Private placement fund have many advantages, such as the function, information-open, establish cost. At the same time, it has some disadvantages.There are many mistakes about what is the Private placement Fund. In fact, the trust is the legal essence of Private placement Fund.As the outcome of the development of market economy ,Private placement Fund has its inevitability and rationality. However, it has some shortcomings. For example, Private placement Fund lacks the legal status, the internal control is weakness, the melon-cutting is nonstandard, the rights and interests of the investors can't get protection usually, something can't be supervised well, increase corruption. With the lack of protection and supervision by the law, has brought not only something new but also some unrest into the stock market. Therefore, it is very necessary to construct the institution of Private placement Fund immediately.It is very necessary to learn the legislation of experiences oversea, especial the United States, such as the principles of independency of fund, party equality, efficiency. Based on the reference of other countries, we should combine the fact of China to construct the relevant law.As for as the specific issue of construction of Legal Establishment of Private placement Fund in China, there are some points should to emphasize: the arrangement of market admittance ,organize and collect ways ,supervision of the resources of capital, risk management, information-open, the establishment of responsibility system and so on.It is the systemic project for Construct the Legal Establishment of Private placement Fund. On the one hand, specific legislation is necessary, on the other hand,it's also important to get support from other relative laws.