Study On Legal Regulation On Hedge Fund

With the sharp development of financial globalization together with the financial derivatives being widely used, there are growing tendencies for international capital to transact more freely and bigger in size worldwide.Actually,international idle fund such as hedge fund has placed great influence towards the international financial system as well as each independent state's. In the recent years, great reforms have been taken and the capital market has grown more mature in China,"Hedge Fund" has come to our sight. Take the practice of the hedge fund's role in dealing with the south-east asia economic crisis, we shall never ignore the impact on its role to the capital market. In China, our understanding towards "hedge fund" has experienced a process from strangeness to familiarity, a process depending on the perfectism of our capital market.We do believe, with more widely used of all kinds of derivatives, hedge fund will influnence more in our society. Therefore, before hedge fund being effectively used by our country, we shall firstly set up efficient regulation system and then enact related laws to regulate the practice for the purpose that it will avoid some possible impact and could-be losses hedge fund will bring to us.This paper has detailed descriptions towards the definition, characteristic, category, operation and related regulation mode for hedge fund and finally expressed the attitude of the author and corresponding suggestions. This paper is to be divided into six chapters, including the introduction, chapter one to chapter four as well as the closing statement, the content of each part may be as follows,The introduction mainly contains the writing motivation and purpose.Chapter one is on "Hedge Fund summarize".This chapter briefly introduce to the readers about the definitions of hedge fund and then goes to the characteristic, category and its history and the latest development for the purpose to uncover the mysterious "mask" of hedge fund.Chapter two is on "Hedge Fund operation, risks and necessity of regulation".This chapter firstly introduce the operation of hedge fund expressly and its incurred risks in order to illustrate the necessity for regulation upon the fund.Chapter three is on "Hedge Fund organizational structures and mode for the fund's regulation". This chapter detailed introduce and give advice on the current legal structures in China as well as the regulation mode in USA and Hongkong towards hedge fund.Chapter four in on " Hedge Fund legal policies and Thinking towards the legal regulation on hedge fund in China". This chapter is elementarily expressed introduction on current legal plocies and the future environment for the development for hedge fund and its restricted factors and at last opinions and suggestions on the development of hedge fund by the author.In the closing statement, the author re-state his opinions on hedge fund.