A Study On The Legal Issues Of "Gambling Agreement"

It has been put forward in the Eighteenth Congress of CPC that we should respect the market, and make the market regulator to fully play its due role. Followed the guidance, the strategy of driven-by-innovation has been further implemented, and the innovative industry and mechanism has been further developed. At the same time,China’s private equity market has been increasing prosperously. Along with international private equity investing Chinese enterprises, the valuation adjustment mechanism(VAM) was introduced to China. After Mengniu’s event, the wind of VAM has a hit in China’s equity market. After a long-term development in the sophisticated capital markets, VAM has been commonly used as standard terms in private equity investment agreement and is protect under the law. However, no matter in theoretical domain of capital or practical domain of law, people don’t have a clear understanding of VAM and keep arguing about its force and whether it was angel or devil. Based on this, a research which focusing on the legal nature and the implement in China of VAM, or giving clear answers to questions mentioned above, has a significant meaning among theory domain, legal practice, or practice in VAM. I start with three VAM-caused cases which are Haifu, Fuhui, Ruifeng Investment Disputes.Then I briefly introduced their facts and verdicts, based on this, I analyze the disagreements from each courts, refine the debate of these kind of case, and analyze and regularize it from a jurisprudential perspective. Finally, I deeply analyze the validity and the effectiveness of the legal nature of VAM. In the framework of present law of our country, I give analysis and conclusion of the legal impediment emerging in practice, and offer operating recommendations to the implement of VAM in the area of equity investments in China.