Legal Regulation Of Illegal Fund-raising System And China's Institutional Change

Private fund-raising as the most ancient mode of financing is one of Chinese economic and social development can not be a lack of the normal state affairs, but it is an exception under the behavior of financial repression. Because it has often been labeled "illegal fund-raising," the label, and as a sword of Damocles hanging over his head, in the fall when the need arises to go under the knife the spirits of the results of panic in addition there is mud stone fish and shrimp. So in the past, one by one "Shen Tai Fook" who have been punished for the same time, and ultimately, "Sun Dawu" who, at the same time ensure that the financial monopoly is difficult to say no hinder creativity, so how private financing in the "illegal fund-raising" is defined in clear, the relationship between the possibility of establishing a people-oriented market economy and social success of the efficiency of the whole.This article first introduces the basic concepts of private fund-raising festival will be some extension of its concept and common Discrimination compare and analyze the resulting civil raising the theoretical basis for reviewing the laws on illegal fund-raising regulatory evolution, pointing out that two of the key variables. Analysis on the basis of the illegal fund-raising is in order to empirical case of questions. The illegal fund-raising through the existing legal system, the study pointed out the existence of which the problems and shortcomings, that is, non-governmental fund-raising at this stage there is no clear legal status, legal and illegal is not clearly defined borders, the relevant system also imperfect. Therefore, the next raised the possibility of ways to solve the problem:Reconstruction of illegal fund-raising system, supplemented by supporting financial measures.Whether acknowledged or not, private fund raising both in our country there has been and will continue to exist. Private fund-raising for China's economic development has played a huge role, but for decades, private fund-raising has always been its "illegal" status exists (in addition to bank interest rates four times lower than the same period of civil personal loans), private fund-raising activities of the Government be classified as a fight against the "illegal fund-raising," which not only makes those with a legitimate financing needs of businesses and individuals without effective financial support, but also makes the illegal fund raisers who have a real mix of them, passing them off. Therefore, to truly effective in combating illegal fund-raising, we must raise funds from the law to give people a clear position, so that a level playing field with the formal financial can complete each other. We should give a clear definition of illegal fund-raising and standardize them. Finally perfect private financial activities and the establishment of the relevant supporting legal and regulatory system, while raising participant awareness of the law should be strengthened, in the lawless elements of Gregory the temptation to maintain a high degree of vigilance and sober-minded, prudent investment. Only in this way, the real in order to be effectively curbed illegal fund-raising, private fund-raising in order to play a greater role in promoting economic development.