Research On Legal Supervision System Of Private Equity Funds Of China

For the vigorous development of private equity funds in China, guarding private funds to be standardized gradually, guarding against financial risks and improving the regulatory mechanism is a new task which China face now. The private equity funds has been quite comprehensive in Europe, America and other countries and regions, but because of the differences in economic environment, policy environment and stage of development, the legal supervision of private equity funds of China involves different factors. The question that this paper wants to research just is how to improve supervision of the private equity funds in China.Under the premise of considering the risks inherent in private equity fund market, by analyzing and comparing advanced control mode from other countries and regions, this paper builds a sound and harmonious supervision of the private equity funds on the basis of existing domestic laws and regulations, and provides legal guidelines and the basis of decision making for the practical executors.The body of this paper includes four parts: analysis on the risk of private equity funds and the reason; the regulatory status and regulatory objectives of private equity funds in China; analysis on legal supervision of private equity funds of foreign countries and their messages to us; finally some regulatory proposals on supervision of private equity funds in China.Part I: The analysis on the risk of private equity funds and the reason. First, this part begins with the status and the form of organization of private equity fund in our country, to discover some characteristics and shortages of private equity fund of China. Then it researches the market risk of private equity fund, and points to the general risks of private equity fund. Finally, this paper discusses the special risk impacts in our country because of the immature market, and defines the necessity of supervision of private equity funds. Part II: The regulatory status and regulatory objectives of private equity funds in China. This part first begins with the in-depth research from the points of regulatory agencies, legislative status, organization form, qualified investors and managers, information disclosure and other aspects, comes to the shortages of supervision of private equity funds. Then, this paper combines with the risks of private equity funds and the shortages, and points to two objectives of the supervision of private equity funds—protecting the investors and reducing the risk.Part III: analysis on legal supervision of private equity funds of foreign countries and their messages to us. This part studies the regulatory systems of the United States, Britain, Japan, Taiwan and other countries and regions, from the regulatory system from regulatory agencies, legislative status, organization forms, qualified investors and managers, information disclosure and so on, and it focuses on the advantages and what we can learn from the regulatory systems of those countries and regions. After the analysis above, the paper summarizes the messages on regulatory agencies, legislative status, organization forms, qualified investors and managers, information disclosure and risk prevention that those countries give us.Part IV: some regulatory proposals on supervision of private equity funds in China. On the basis of foreign advanced regulatory systems above and the characteristics of private equity funds, this part points out some regulatory proposals for improving the legal supervision system of private equity funds of China from the points of regulatory agencies, legislative status, organization forms, qualified investors and managers, information disclosure and so on.