Hedge Funds And Financial Markets

Refer to hedge fund,many people don't know what it is.But refer to the 1992's British pound, 1998's southeast Asia financial crisis,and the bull market of international oil and other large amount commodity future,nobody can say don't know.In fact,the hedge fund is wire-puller.What's hedge on earth?Why does it have so great energy?In fact,in America and other developed countries' financial market,hedge fund is well known as traditional mutual fund which attracts many investors.In the stock market,bond market,global currency market and all kinds of opion,future market, if there is profit,the hedge fund will appear.Because its swift coming and going,its complex investment strategy,people feel it mystery,and always call it ghost.Because of the ghost's acute nose,great capital strength,it made turbulence in financial market of some countries or areas,so it got condemned. Actually,hedge fund is the product made by world economic integradtion and creating of financial derivatives.Its existence and operating is on the demand of high marketization,reducing market risk and improving efficiency.It represents the historical inevitability.Under the great background of world economic integradtion,capital flowing surflus,we should know hedge fund further which is the ripe financial institution in developed country capital market.Not only be ware of its operation in Renminbi exchange rate reform,but also we should try to develop domestic hedge fund.My thesis sets forth on the point view of hedge fund's basic theory,operation case and its effect on China,combining our fmancial market actuality and anticipation,analyzing feasibility of hedge fund's development in domestic.Through demonstration analysis on three famous hedge funds' investment operation cases,explaining hedge fund's operation mechanism,huge effect on international financial system,pondering contemporary international financial system hole.On the basis of demonstration analysed think capital flowing should be free and be ordered.Only if strengthening on supervision,hedge fund could sevice investor better,and be favor of globel or area capital flow.America and Hongkong adopt two typical supervision model on hedge fund,we could use it for experience,and supervise on abroad hedge fund better,and do scientific direct on domestic emergencing hedge fund.