Research On The Legal Supervising System Of The Private Placement Fund In China

As the development of the economy and continuous accumulation of social wealth,new financing tools have been created so as to satisfy the investment trend and the ability of risk endurance of different investors,one of which is the private placement fund.According to relevant investigation,there is a large amount of private placement fund in the Chinese securities market now.Due to the lack of rules of its legal nature,operation patten etc,such private placement fund exists in disguised forms of various kinds without any rules of laws and regulations,which exerts negative influence on the stable development of the Chinese securities market.This thesis gives a view of private placement fund and explores their advantages through an analysis of their internal structure and operating mechanism.Then the economic effect of private placement fund and their risks management are discussed.At the end of this thesis, some specific policy and suggestions to construct private placement fund system in China are put forward with a view to standardize their development.The first chapter mainly illustrates the definition and the advantage of private placement fund.Private placement fund is one kind of investment funds,which is not through strict registration and collect capital in several invest institution and rich individual clandestinely.Comparing with public placement fund,private placement fund have many advantages,such as the function,information-open cost.At the same time,it has some disadvantages.The second chapter describes the current situation of private placement fund in China and their shortcomings.The paper introduces the reason and the history process of the development of the private placement fund at first in order to show a tendency to standard.However,it has some short comings.For example,private placement fund lacks the legal status,the internal control is weakness,the melon-cutting is nonstandard, the rights and interests of the investors can't get protection usually, and something can't be supervised well,increase corruption. It is very necessary to learn the legislation of experiences oversea,especial the United States,such as the principles of independency of fund,party equality,efficiency.Based on the reference of other countries.we should combine the fact of China to construct the relevant law.The forth chapter analyses the perfection of supervision on private placement fund in China.The chapter points out the aim of supervision in macroscopic angle.As for as the specific issue of construction of legal establishment of private placement fund in China,there are some points should to emphasize:the arrangement of market admittance,organize and collect ways,supervision of there sources of capital,risk management,information-open,the establishment of risks involved system and so on.The regulation of private placement fund in China reflects a retroactive recognition of its legitimacy and theres respects to market selection whose aim is to fully bring out its positive effect and limit its negative influence.It will not only benefit the balancing of market development and maintain the market stability but also promote the maturity and improvement of the system of securities fund market.