The Research On Hedge Funds Of China Under The Financial Globalization

Since the Southeast Asian financial crisis in 1997 and the "Hong Kong financial battle " in 1998, we are no longer strange with hedge funds; and because of China's financial reform and the gradual deepening of the great development of the financial markets, domestic scholars'attitude to hedge funds had become to accept and welcome Comparing with unanimous opposition in the past. Especially in the last four years, the domestic stock market went through the climax and a trough where the majority of stock investors get a great loss. And this circumstances even pricks up the huge contradiction between the strong demand for investment and the rarity of instrument for investment.Under this background, this paper starts from financial globalization. First of all, analysis the financial analysis of the impact of globalization on China and China's need for the development of hedge funds, and then an objective description of China at this stage of the development of hedge funds and the inadequacies of the status quo, and Analysis of the difference between the Western developed countries and Japan, the development of different hedge fund context, and ultimately for our development of the feasibility of the recommendations proposed by hedge funds.The article is divided into five parts of which the first part describes the purpose and significance, summarized the research on hedge funds at home and abroad and points out the methods and creative writing; The second part first introduces the definition and characteristics of hedge funds, and then analyzes the instruments and core investment strategies of hedge fund, and finally focuses on the theoretical basis for hedge funds with an example for illustrating the operation of the mechanism of hedge funds; The third part, first of all, introduces the development of the hedge funds and then analysis the reasons for the failure of the well-known United States hedge fund management company LTCM, how the Japanese hedge fund industry has developed, and the role of the hedge funds in the Southeast Asian financial crisis-from all of which, I hope to find out the factors that'll be useful for our country; The fourth Part discusses the significance of developing hedge funds and proves the good return of hedge funds with actual data .So as to point out the necessary for our country to develop hedge funds; The last part of this article pointed out the obstacles and deficiencies in developing hedge funds in our country at this now. And based on the former four-part analysis, the article finally gives recommendations of developing hedge funds in our country.