Legal Regulation Of Private Equity Funds In China

Private fund is a new type of financial business in China with security market, and develops totally on the basis of market demand. Compared with public offering fund, private fund is expedient to set up, flexible and covert to invest. There is little possibility for it to be pursued by market and the chance of obtaining returns is very great. Owning to above traits, Private fund has developed greatly, and plays important roles in the global finance service. At the present time, monstrous private funds in quantity exist in China. Its quantity comes to 600-700 billion Yuan. It has become a irresistible force in security market. But there are many problems on the operation of private fund, because it has not been admitted by law. Obviously, it is not accorded with marketable rule if we prohibit monstrous private funds in quantity. So we should use for reference some experience from developed countries, legislate for private fund, guarantee the proper development of private fund within the framework of legal system.The paper is composed of 4 chapters.Chapter 1 is about summarization of private fund. This chapter expatiates on definition, trait, category and quality. The author analyzes the trait of private fund in detail.Chapter 2 is about law of private fund in developed countries. This chapter provides a clear description of private fund's law in America, Britain and Japan. This chapter discusses private fund's law in America at length, extends an overall perspective about management organization, frame of organization, issue's method and venture disclosure. These will provide some valuable experience for the standardization of Chinese private fund system.Chapter 3 is about development and problems of private fund in China. This chapter analyzes background that private fund comes into being in, makes a summary to its phases of development, manner of management, trait and existent forms of Chinese private fund. This chapter places emphasis on problems of private fund. It is possible to bring out many other social problemsif we do not regulate about these problems early.Chapter 4 is about analysis of law environment and legislative suggestion of Chinese private fund. This chapter analyzes the meaning of private fund legitimization and discloses the law space of private fund development by analyzing the law and rule of our country. In the end, on the basis of other countries' experiences, the author put forward legislative suggestion of Chinese private fund by combining the capital market of our country.