Harmonious Society "third Domain" Of The Chinese Private Equity Investment Fund Industry Governance Path

The Third Sector is the social space with the purpose of social service and is paralleling to governmental and individual spaces.It also means social autonomic organization.In modern social management mechanism,it has the social functions can not be owned by government and individual.Entering into 21 century,China is constructing Harmonious Society completely.At the same time,Private Offering Securities Investment Funds(PSIFs) which are originated from Chinese civilian space have become enormous spontaneously. Total amount of them has exceed 1,000 billions RMB,and so many entities take part in fundraising and fund management.So,it is not undue to regard them as industry.It promotes the construction of Harmonious Society in some aspects and also brings some dangerousness to it.Facing it,in order to accomplish harmonious developments of itself and relative social sectors, whether we should regard The Third Sector as main instrument to manage POSIF industry;why we should regard The Third Sector as main instrument to manage POSIF industry;how to use this main instrument to manage POSIF industry,become the main questions to which this article wish to answer.Besides introduction and conclusion,this article is divided into four parts. The basic contents of them are as follow:Part One is divided into 2 sections.In Section 1,at first,defines The Third Sector according to the literatures written by Habermas and some other western and Chinese scholars,then,introduces some academic outcomes accomplished by western and Chinese scholars which are related to the arguments of article,and summarizes and deduces the social functions of The Third Sector from their academic outcomes.Section 2 demonstrates the necessity of constructing The Third Sector in Harmonious Society construction from the angles of Chinese practices,historic ideology,and the policies prescribed by highest decision-makers in China.Part Two is divided into 2 sections.Section 1 is divided into 5 subsection.In subsection 1,this article defines PSIF theoretically.Subsection 2 discusses the differences between POSIF and public offering securities investment fund,and based on their differences,proposes that we can use different governance path for POSIF.Subsection 3 reviews relative legislations about Private Hedge Funds in developed countries,then makes clear that POSIF is the necessary outcome and necessity in the development of market economy,basic legislative attitudes toward it in developed countries are exempting it from registration and regulation.It should be the direction of Chinese legislations about it.Subsection 4 reviews the history and status quo of Chinese POSIF industry,demonstrates that Chinese POSIFs originated from civilian sectors spontaneously.They have become giant and complicated.That is the outcome from common activities by reasonable persons in market economy and free persons in civilian society.Subsection 5 studies official documents about POSIF in China,makes clear that Chinese legislation about POSIFs is laging behind,legislative and political restriction and administrative regulation on them is very strict recently.Section 2 analyses impacts of POSIFs on Harmonious Society.Subsection 1 analyses positive affections on Harmonious Society from 5 aspects.Subsection 2 also analyses negative affections on it from 5 aspects.After that,this article proposes that we should not make POSIFs out of control,but should not make them under excessive control,we should explore a governance path in which their negative affections can be restricted,their positive affections and freedom can be upheld.Part Three is the ontology A of this paper,with the mission to accomplish theoretical innovation of this article,is divided into 2 section.Section 1,based on the theoretic and practical matting brought by research outcomes in Part one and Part two,proposes the basic governance path on Chinese POSIF industry in which government is direction,associate of fundraiser and fund managers is the axis,entities taking part in POSIF directly is basement, association manage ordinary and significant POSIFs,government can regulate significant POSIFs directly and regulate ordinary and significant POSIFs by regulate association.Meanwhile,put forward the main point of this paper,i.e. among government and The Third Sector,we should regard the latter as main instrument to manage POSIF industry.Section 2 uses value analysis approach in commercial legal science to analyse the rationality of the basic governance path and main point.It is divided into 3 subsection.In subsection 1,at first, discusses freedom,guilds in middle ages and the origination of commercial law,at second,discusses the deviation between freedom value,freedom of POSIF industry arid the way to regulated POSIF industry which is mainly depending on government,at third,proposes that association of POSIF industry is able to uphold freedom value of commercial law and POSIF industry.In subsection 2,at first,discusses the relationship between freedom and order,at second,demonstrates the lag and hard prescribing process of Chinese official law about POSIF,at third,directs to the tendency of using policies to regulate actions in microcosmic aspect of market economy by Chinese government,point out that policy is not law,at fourth,according to the theory of freedom and order by Hayek and social contract by Rousseau, set forth the necessity to establish civilian commercial legal order in Chinese POSIF industry,in the end,proposes that civilian commercial legal order is the catalyzer for and supplement to official commercial legal order.In subsection 3,at first,proposes that benefit and efficiency is the aim of freedom and order in commercial law;then,demonstrates how the guilds in mid-ages promote commercial benefits and efficiencies;at third,using the theory of dual-malfunction of market and government in Institutional Economics,analyses the inevitability of The Third Sector in modern market economy;at fourth,discusses the negative impacts on POSIF industry by excessive government regulation through dual-malfunction theory from 4 angles;at fifth,discusses the necessity of using The Third Sector as main instrument to manage POSIF industry from 4 angle,in order to make Industry Management,a public product,provided by market.Based on research in foregoing three Parts,this paper has answered whether we should regard The Third Sector as main instrument? why we should regard The Third Sector as main instrument? So,Part Four,as the ontology B of this paper,undertakes the task to accomplish institutional innovation of this paper and wish to answer the last main question,i.e.how to use The Third Sector as main instrument to manage POSIF industry? It is divided into four sections.Section 1 discuses how to provide organizational supports to Chinese autonomic management mechanism in POSIF industry,and it is divided into 5 subsections.Subsection 1 analyses the reasons for regard entities engaging in fundraising and fund management businesses as cut-in point.Subsection 2 proposes that setting up relative uniform autonomic system depending on the activities of fundraising and fund management not the sort of entities engaging in that businesses.Subsection 3 analyses the principle of setting up autonomic management system,i.e.depending on association which is already existed at first,and under very special circumstances,establishing new association. Subsection 4 proposes regard the associations of Chinese securities industry as main organizational supports and the associations of other industry which is related to fundraising and fund management as supplemental organizational supports.In subsection 5,at first proposes regard Chinese Securities Association(CSA) as the statuary national association for POSIF industry;at second,discusses how to set up statuary association in the province-level administrative area outside Inner Mongolia and proposes CSA should appoint statuary association in Interior Mongolia,a province-level area,among other associations related to fundraising and fund management in other industries;at third,discuses why CSA should appoint the associations of securities industry in Shenzhen,Qingdao,and so on,five vice-province-level administrative areas in China and the measures and restrictions to appoint statuary association for POSIF industry in other vice-province-level administrative areas except Wuhan;at last,based on the review about economic,political,financial situations including situations of POSIF industry in some city-level administrative area such as Wenzhou,in Zhejiang province,Dongguan, Zhongshan,in Guangdong province,and some other grass-root administrative area on or above county-level,this article proposes that if it is very necessary, statuary association of province-level and vice-province-level administrative area may appoint statuary association in administrative area on or above county-level and under vice-province-level,and disuses the more strict substantive and procedural restriction of those appointments.Section 2 analyses the mechanism about how the fundraisers and fund managers enter into statuary associations,and is divided into 2 subsections. Subsection 1 proposes confirm associations according to Industrial and Commercial Registration situations of enterprises(including branch).In subsection 2,at first,discuses the format of funds which are raised or managed by individual partnerships with or without title and nature persons;then propose confirm associations according to Industrial and Commercial Registration situations of individual partnerships with title;after that,analyses the reasons for allowing those entities to engage in fundraising and management businesses and proposes confirm their associations according to Registered Residence situations of members of individual partnership without title and natural persons.Section 3 discusses the important aspects in the functions of industry management by statuary associations,is divided into 3 subsections.Subsection 1 discusses import aspects in upholding and protecting benefits of POSIF industry and the members of associations.Subsection 2 discuses the important aspects in self-discipline on associations' members and staffs.Subsection 3 discusses how the associations direct businesses of their members and how to make the effects of those directions affect outside entities.Section 4 discusses government's legislation for regulating POSIF and autonomic management mechanism,is divided into 3 subsections.In subsection 1,discusses the legislative format of law about POSIF Industry. Subsection 2 discusses basic ways to prescribe this legislation.In subsection 3, at first,provide advices about the legislative regulation about POSIF,at second,put forward advices about how to setting autonomic mechanism in Chinese POSIF industry in order to make it operating effectively.As above,four Parts of this article follow the basic deductive logic thread, answer those questions,i.e.whether we should? why we should? how should we do?,step by step.Encircling regarding The Third Sector as main instrument to manage POSIF industry,this article carries out research from multi-angles and multi-aspects,and accomplishing the important academic mission,i.e.from theoretic innovation to institutional innovation.Innovation, however,is not perfection.So,in author's opinion,this article just accomplish the first step in research about autonomic management mechanism in Chinese POSIF industry.