On Perfection Of Supervision Of China’s Securities Investment Private Equity

In china there is a huge quantity of underground private equity, most of which have no clearlegal status and are in the gray area of the law. According to the Fund Management Company’sTrial Measures of Specific Customer Asset Management Business and the Securities Company’sTrail Measures of Customer Asset Management Business made by China Securities RegulatoryCommission and the Trust Company’s Management of Collection of Funds Trust Plan made byChina Banking Regulatory Commission, the special account to manage money about fund,securities company’s asset management business and the collection of funds trust plan are threekinds of legal securities investment private equity. Because the Law of Securities Investment Fundjust has principled guidance about it and deal to uncoordinated department regulation as well, thereare kinds of defects in regulatory of China’s securities investment private equity and thesupervision needs further perfection.The whole article is divided into four chapters. Chapter1the present situation of supervisionof China’s securities investment private equity. In this chapter, first, the concept of securitiesinvestment private equity is defined. Then the legal system of it and the problems existing areanalyzed. Just because of these problems, defects of the regulatory system are caused. Legislativepath dependence and that fair to grasp the nature of the securities investment fund businessorganization leave the Law of Securities Investment Fund shortcomings and also result in that thereis only principled guidance about securities investment private equity in it. A law of the SecuritiesInvestment Fund Law and three departmental regulations consist of the legal basis of China’sregulatory system of securities investment private equity. However, this legal system is incomplete,so, it naturally leads to such defects like unclear regulatory boundaries, low efficiency ofsupervision, much more administrative supervision and homogenization of supervision in China’sregulatory system. Chapter2the choice of the regulatory theory of China’s securities investmentprivate equity. Firstly, the regulatory basis of securities investment private equity is analyzed, thatis, in order to protect investors, prevent financial risks, and promote the legalization of securitiesinvestment private equity, supervision of securities investment private equity is necessary. Next is aconcrete analysis of the value of security, freedom and equality that supervision points to. And thegoal to achieve through supervision is determined. That is protecting investors’ interests, at thesame time, preventing financial risks that may be led by securities investment private equity, aswell as guaranteeing the effective function of securities investment private equity withachievements of the foregoing two goals. Based on this goal, the supervision of securitiesinvestment private equity should comply with the principle of protecting investors’ interests, theprinciple of supervising according to the law, and the principle of proper supervision. And make itclear that the core of supervision is to separate ordinary investors from private investors so as toprevent ordinary investors from being attracted into private equity groups by restricting the privateinvestors’ qualifications and limiting the distribution ways of private equity. Put forward that thelegislative framework of the Law of Securities Investment Fund need to be changed from thepresent legislation according to the direction of investment of the fund to the legislation accordingto different raising ways of the fund. Chapter3the choice of regulatory system of China’ssecurities investment private equity. First, the article analyzes the US’ and Britain’s regulatory systems of hedge fund. Their systems are both an indirect supervision in general, and the center isdetermining qualified investors. But their concrete regulatory methods are different because thedifference of their regulatory theories of securities. The next is the analysis of the construction ofChina’s regulatory system. On the basis of learning experience from Britain and the US andcombining with China’s reality, the article demonstrates concretely how to set up regulatory body,as well as how to confirm regulatory targets and regulatory ways. Chapter4perfection ofregulatory matter of China’s securities investment private equity. In this chapter, the properregulatory ways of China’s securities investment private equity are demonstrated concretely. Theuse of regulatory ways focuses according to different stages of the operation of securitiesinvestment private equity. When set up the securities investment private equity, the supervision onmarket access and the supervision of ways to raise money should be included. And the supervisionon market access should include the record of the fund manager, the record of the fund and thequalified restriction of investors. The operation of securities investment private equity shouldinclude appropriate degree of supervision of disclosing information and supervision of transferringfun shares.