Research On Legal Regulation Of Sovereign Wealth Funds

In recent years, with China's rapid economic development and increasing exports, China has accumulated huge foreign exchange reserves. As of March 2009, foreign exchange reserves reached a record two trillion U.S. dollars in china, as the economy continued to grow, China's foreign exchange reserves will continue to grow. This brought the pressure of appreciation of the RMB and the inflation, at the same time, increased the difficulty of the management of reserve assets and risks. At this background, September 29, 2007, China Investment Corporation is established. China's first sovereign wealth fund was showed in the world.So far, the legal nature of sovereign wealth funds and the main mode of its operation such areas as international and domestic legislation are at the exploratory stage. The vast majority of these legislative efforts have not yet formed an official document of law, but attention to these legislative activities and research developments, and efforts to adapt to these legislative trends. For the China's sovereign wealth fund, it is undoubtedly of strategic importance and practical significance.The full text is of more than 36,000 words. With the exception of the introduction and conclusion, the paper is divided into four parts.The first part "overview about sovereign wealth funds". The part is about an overview of sovereign wealth funds, mainly on the meaning of sovereign wealth funds, type, characteristics, as well as the emergence of the sovereign wealth funds, development and its impact on the international financial system. With the rapid economic development in the second half of the 20th century, international trade growing prosperity in emerging countries and growing foreign exchange reserves, sovereign wealth funds are at the rapid pace of development. Generally speaking, sovereign wealth funds as the public wealth is controlled and disposed by the government, performed a kind of foreign currency assets, the investment behavior is manipulated and controlled by the highest economic authorities of the country or region, and therefore subject to a number of international countries question. As far as the international financial system is concerned, the rise of sovereign wealth funds would weaken the U.S. financial hegemony, to change the existing pattern of global foreign direct investment. The second part "related legal issues about sovereign wealth funds". The part focuses on legal issues related to sovereign wealth funds. Sovereign wealth funds as a kind of international investment funds are unlike traditional private investment funds, and thus it is necessary to explore the related legal issues of sovereign wealth funds. The emergence of sovereign wealth funds is based on the principle of national economic sovereignty. The principle of national economic sovereignty gives the rational use of their national wealth to each country. At the same time, sovereign wealth funds in the course of the operation is no doubt related to financial protectionism, information disclosure, risk control, transparency and legal issues such as bankruptcy.The third part "legal regulation about sovereign wealth funds". The part is mainly about the legal regulations of the sovereign wealth funds. Sovereign wealth funds owned by a sovereign country or region and established by the governments are the financial investment instruments. Because of its huge size, its market influence can not be ignored. At the same time, the emergence of sovereign wealth funds caused a great impact on international financial market. The international communities try to strengthen the legal regulation of sovereign wealth funds. The relevant countries are still exploring ways to strengthen the regulatory system at the international level. This article holds that we can make use of existing international organizations, such as the International Monetary Fund, World Trade Organization, the Organization for Economic Cooperation and Development to improve the relevant legal system.The fourth part "legal regulations about China's sovereign wealth funds". The part is about the legal regulations of China's sovereign wealth fund. China, as the world's largest developing country, after three decades of reform and opening up, has been increasing exports. The balance of payments surplus is increasing rapidly, as well as the large scale of China's foreign exchange reserves, China Investment Corporation emerged. Because of its large size, China Investment Corporation led to concerns related to the developed countries. In a highly competitive international market, such as China's sovereign wealth fund want to maintain the competitiveness and realize the Chinese government of "going out" strategy, China's sovereign wealth fund need to perfect internal corporate governance structure, information disclosure and transparency actively.Seeing from the growth trend of sovereign wealth funds, foreign exchange reserves as the source of funds is still a sharp expansion. It is important to understand the nature of sovereign wealth funds, the role and attitude of the international community. Wide attention at home and abroad at present, but consensus has not been reached. Many countries give useful opinions in their own position, we should pay close attention, at the same time, in order to guarantee security of china's sovereign wealth funds, we must learn from successful experience of other countries, participate in international legislation extensively and strengthen international supervision. Our expected goals will be realized eventually.