Comparative Research On Legal Regulation Mode Of Hedge Fund

Hedge fund uses its sophisticated investment strategies and highleverage, to obtain high returns for the investors, but at the same time hasbrought tremendous system risk to the international financial market. Inrecent years, several financial crises all have been impacted by hedge fund.The establishment of a more rational and effective legal regulation mode ofhedge fund, in order to maintain the stability of the international capitalmarket and the international financial market, has become the generalconsensus of the international community.With the deepening of the degree of openness of financial markets inChina, and, domestic and international economic and financial exchangesincreasingly active, and, the emergence of securities margin trading and stockindex futures and other financial services and financial products, providingbasic living conditions for the development of hedge fund in China. In order to protect the legitimate interests of domestic investors and maintain thestabilities of capital market and financial market in China, it’s time ofnecessary to establish legal regulation mode of hedge fund in China. At thispoint, the research on legal regulation system of hedge fund will have astrong theoretical and practical significance.In the legal regulation mode of hedge fund, the most representative isthe U.S. model and the Hong Kong model. These two modes have their owncharacteristics, their own strengths, but there are also many common, notsimply the separation of which one is better. China should learn from thestrengths of these two modes, combined with our own national conditions, setup our own regulation mode of hedge fund-the China model.In this article, analyzes the legal regulation mode of hedge fund in U.S.and Hong Kong, and do some comparison, combined with the developmentof hedge fund and the current situation on legal regulation system of hedgefund in China, reveals the enlightenment of the legal regulation mode ofhedge fund in U.S. and Hong Kong to China. The full text is divided into fourparts, including introduction, the first chapter, the second chapter, the thirdchapter, and conclusion.In the introduction section, the chapter starts from presenting problem,points out the research perspective of this paper, and indicates the significance of this study.In the first chapter, the chapter analyzes the legal regulation mode ofhedge fund in U.S. and Hong Kong, and the general character ofdevelopment in both.In the second chapter, combining financial practice and the presentsituation of legislation, the chapter estimates the development of hedge fundand the current situation on legal regulation system of hedge fund in China.In the third chapter, the chapter obtains enlightenment from thecomparative research of the legal regulation mode of hedge fund in U.S. andHong Kong, recommends the establishment of open regulation mode ofhedge fund in china, and describes the relevant tentative ideas.In the concluding section, the chapter emphasizes the construction oflegal regulation mode of hedge fund for the protection of the legitimate rightsand interests of investors and safeguarding the stability of capital market andfinancial market has important significance in China.