The Study On Private Securities Investment Fund In China

The private securities investment fund, that is called the hedge fund in the US, has been a new investment tool with great popularity. It has brought profound changes to the way and idea of conducting financial investment activities, and even the global financial system. It also has been playing an important role in the modern capital market.However, the private securities investment fund in China is still at an initial stage with a lot of room for improvement. The U.S. private securities investment fund developed along with the development of finance, especially with the emergence of the transaction of financial derivatives (futures and options, etc.). With the trend of financial globalization and innovation of various investment tools since the 1990s, the U.S. private securities investment fund industry has greatly progressed, with a 20% year-to-year growth in the number and scale of funds. Today the private securities investment fund has become the fastest-growing strength in the U.S. financial sector. The practice of the U.S. private securities investment fund in its initial stage sets an example for the development of China's private securities investment fund. However, everything has its both good and bad sides. The development of the U.S. private securities investment fund will also be a threat to the security of the entire financial system. This thesis summarizes the characteristics of the U.S. private securities investment fund and discusses how to develop the private securities investment fund in China.There are five sections in this thesis. Chapter One introduces the significance of research on the topic as well as its research methods. Chapter Two, definition and general introduction of private securities investment fund, introduces the concept of private securities investment fund, its characteristics compared with publicly offered fund and its operating mechanism. Chapter Three summarizes the characteristics of the U.S. private securities investment fund and its development trend in accordance with the latest information. Chapter Four analyzes the practice of the private securities investment fund in China, including the history of private securities investment fund, its characteristics and current situation in China. The private securities investment fund in China emerged as a result of the demand of financial markets. As a new innovative investment tool, its emergence and development bears an intimate relation with the defect of China's securities market system, which has many potential problems including disordered and blind operation as well as various illegal activities in the market. Based on the real operation characteristics of the private securities investment fund in China, Chapter Five discusses the problems of the private securities investment fund in China and the significance of its development. And it also presents a series of practical ways of management and suggestions for the development of the private securities investment fund.