Discussion And Analysis Of Hedge Fund: Theory, Operation, Supervision

With the cancellation of the limitations on capital flows between countries and the loosening of supervision on countries' capital markets, the global industry of hedge fund is developing quickly. A series of financial crisis that broken in the 1990's and impacted the world economy greatly caught a lot of sights on hedge fund, and the world took it as tiger and flood. We should know not only the phenomenon and result, but also the reason, so that we can valuate the influence and decide our policy.The part of introduction tells the background and research meaning of this paper, and summarizes the related theories and researches on hedge fund. The second part summarizes hedge fund's definition, history, status and main characteristics, and compares it with mutual fund. The third part of the paper introduces the operate mechanism and strategies used by hedge fund ,then analyzes the risk & interest characters of hedge fund specifically from the perspective of micro function. From the perspective of macro function the fourth part discusses two important questions, i.e. whether hedge fund physically influenced the market, whether it created market instability, then taking the famous Hong Kong financial crisis in 1998 as an example in detail introduces the operation of macro hedge fund, in the last of this part compares the attitudes, measures and suggestions on hedge fund by IMF, the US government and some developing countries. The fifth part tells China's private fund and the introduction of hedge fund and inspiration, analyzes the feasibility of the introduction of hedge fund, designs the introduction to the strategy of hedge fund wholly, and discusses the supervision on hedge fund in Chinese market. In the last chapter the writer draws conclusions.