Study Of Private Placement Fund Development And Regulations In China

Private offering fund aims to raise funds through a few institutional investors or individuals in the form of investing instruction book ( non-public recruiting instruction book). At present, Private offering fund, as a crucial strength of private investment, is developing very fast in our nation. It plays an irreplaceable role in the development of the whole national capital market and economy.The main investors of private offering fund have large amount of Liquid funds and good capability of self-protection and risk bareness. On one hand, it could better focus on the design of certain products and further enrich the finance and investment tools to investors. One the other hand, private offering fund has few restrictions in investment and much more flexible in trading way comparing to our nation's present public products. The healthy development of private offering fund is good to improve the liquidity of the market, increase the diversity of the main markets, and optimize the structure of our country's stock market investors.However, at present the legal status of private offering fund in China has not been established and exits many kinds of internal problems. But we should be aware that it becomes more and more important on the development of our nation's economy. Based on the background of the development of national economy, financial market and economic globalization, this article aims to observe and study some crucial problems of private offering fund's standardizing development in China. I explore the function of private offering fund in many aspects, such as the necessity for development of national economy, exiting risk of present system and proper control system design. Combining the practice of our country, based on the mature control experience of developed country, I propose some suggestions to promote the development of private offering fund and the establishment of control system. There will be some positive meanings to the development of private offering fund and design of control system.This paper firstly discusses the ordinary theories of private offering fund and main characteristics of private offering fund to confirm the range we intend to deeply discover in the following. Based on the practical significance of development of our nation's private offering fund, the paper deeply analysis the necessity for the development and proposes the need for establishing supervision system. At the same time, in order to get some useful instructions, I also studied many related cases from developed countries. Combining our national conditions, policy-related suggestions are proposed from economic view to establish and develop of private offering fund system in our nation.The first chapter explains the ordinary theory of private offering fund. It mainly introduces theoretical definitions of private offering fund at present and describes main features of private offering fund from the methods of collection and legal quality. It also describes practical significance, the analysis the inevitability and necessity of developing private offering fund in China.The second chapter explores the development and supervision condition of private offering fund in developed countries, which is mainly in American, Japan and England. Based on this exploration, it abstracts some senses of supervision model from foreign cases.The third chapter analyzes the development and present supervision situation in China. It describes the background and developing process of our nation's private offering fund, and explores the problems existing in the process of developing and supervision. Through analyzing the particularity of private offering fund in China, I find there are mainly four problems: the shortness of legal protection, the confusion of market caused by disorderly competition, risk of credit and system.The forth chapter based on the analysis of formal chapters, proposes some policy suggestions to the development of private offering fund in our nation. One is to establish the legal position of private offering fund in China; another is legal arrangement based on the organizational form of private offering fund; the third one is to promote the development of private offering fund in the aspect of politic.The fifth chapter proposes certain political suggestion to found private offering fund in China. Firstly, government should supervise the setup and establishment of private offering fund. Secondly, it would be crucial to strengthen the supervision of private offering fund's operators by making corresponding norms. And, government should regulate the dealing process of private offering fund. The last one is to setup several efficient systems to guard the operation of private offering fund.The conclusive chapter suggests finding a series of measures to encourage the development of private offering fund, and establish a cautious, effective and strong supervision system to promote the continuance and healthy development of stock market. We have reason to believe that our country's private offering fund will fast develop in the near future and it will play un irreplaceable role in China's stock market.