Developmental Risks And Its Prevention For Private Placement Funds In China

Private placement fund has been generally recognized in the international community, and it occupies an increasingly important position in the international financial market. In China, private placement fund has become an important force that can not be ignored in stock market, and has a major impact to the operation of stock market. Both the international trend and the development status of private placement fund in our country, it calls for China to develop private placement fund. But because of legal and related system to improve time-delay, a large private placement fund still outside the legal monitoring system, this undoubtedly increases the Operational risk of China's private placement fund. The systematic analysis of China's private placement fund risk characteristics, and accurate evaluation of operational risk have great significance for the healthy development of China's private placement fund and the stability of stock market.This paper starts from the carding of theoretical foundation of generation and prevent for private placement fund's risks focus on information asymmetries and information costs. Then, based on present development situation of private placement fund in our Country and the analysis of its risk characteristics, we constructed five structural equation models in the view of four big main risks faced by the development of private placement fund in our Country, and had an empirical examination based on the questionnaire survey data. The results show that legal risk, market risk, operational risk and credit risk are the main risks at present in private placement fund market. The risk of mutual restraint, the relevance of strong, so the proposed of risk prevention measures should based on the status of China's financial markets and highlight specific, In particular, one of institution building necessary to increase the intensity, to build a perfect system firewall to prevent all types of risk. Based on the above analysis, at the last part of this article we propose preventive measures for the development of private placement fund in our Country.