Reference Research On Regulation System Of Hedge Funds

Due to the ever-increasing amounts under management and substantial scale, hedge funds have been a key concern for policymakers worldwide. While China still maintains silence partly because of nearly no hedge fund in China. Fortunately, some scholars are aware of the fact that hedge funds will be introduced with the development of China's financial law system and begin studying this issue and make some positive suggestions.In fact, hedge fund is an excellent investment vehicle which may make contribution to the financial system by facilitating price discovery, market efficiency, diversification and so on. Hedge funds may trigger systematic risk, involved in insider trading and cheating if it is not properly regulated.This thesis will give you a brief overview of fundamental theory of hedge funds, analyze the regulation of hedge funds by cost-benefit analysis. Then it introduces other key countries and regions'regulation systems of hedge funds and analyzes the trend of regulation systems of hedge funds. Considering the benefits of hedge funds toward economy and China currently law system, the thesis holds the view that hedge funds can be introduced. This thesis is of the view that it is worth China learning from many countries and regions. Based on comparative analysis on other key countries and regions'regulation systems of hedge funds, this thesis gives some suggestions on designing China's regulation system of hedge funds. China's regulators should enact and amend some laws and rules so that hedge funds function very well in China by direct regulation and indirection regulation.