A Study On Regulation Of Private Placement Fund In China

Private placement fund is an important power in our securities market today. However, there are many problems on actual operation because of incomplete legal rules to regulate it definitely. Therefore, it is of great urgency to regulate the private placement fund by the consideration of legislative design.The thesis first analyses the concept of private placement fund and definite it clearly. At the same time, it clarifies the basic feature of private placement fund from the main heads such as raising method and object, information disclosure, supervision and administration. Then it point out that the legal nature of the private placement fund is trust. On the basis of clearing the intension and extension of private placement fund, the thesis take apart its current situation from fact and regulation respectively. On the hand, currently the existent forms of the private placement fund in our country ,which are collective asset management plan of securities traders, collective asset trust plan of trust companies, the investment companies of managing own fund and the gentlemen'agreement, all are exposed to many legal problem. On the other hand, we could find out the legal ground and development barrier of private placement fund in the provision of Securities Law, Company Law, Trust Law, Law of Securities Investment Funds, the Partnership Enterprise Law and the concerning department rules. From this, it's necessary for us to enrich and improve the legislation of private placement fund. In this way, it is of great importance to the growth of private placement fund, the transparent and effective supervision and the healthy development of capital market.The author makes the concrete suggestions for the legislation of private placement fund in the main part. In the first place, we should definite the legal status of private placement fund and make the implementation measures under the present legal systems owing to the deficiency of the legal rules. Secondly, the legislative principle is to strike a balance among protecting the investors, controlling system risk and bringing advantage of private placement fund fully. Lastly, the author proposes the solution in some crucial aspects of the legislation of private placement fund by drawing the overseas legislative experience: The limitation should be made in the number and qualification of investors. We should establish the systems of qualification examination and registration of the private placement fund managers in order to control the risk at its early stage. Banks should become the custodians of private placement fund assets due to the distempered credit system in our country. The measures of advertising and marketing, which could not be used, should be stipulated clearly on the offering methods of private placement fund. The information disclosure should be strengthened in light of concrete conditions. In the end, a multi-level and all direction regulatory system should be set up and the systems with regard to recordal, transfer of fund units and tax preference.