The Research On Legal Issues Of The Supervision In Sovereign Wealth Funds

Currently, the Sovereign Wealth Funds is a investment vehicles which belongs to the sovereign state or in charge of the government. The earliest sovereign wealth funds was appeared in the1950s, but on accout of it’s small overall size and established by the small countries, the influnce to the financial market was limited.In the2007financial crisis,Sovereign Wealth Fund has played an extremely important role in the Western capital market.However,many Western countries worried about an inevitable control from the owners of the Sovereign Wealth Fund over their own domestic policies and have used different regulations to limit the investment from those funds.The lack of an overall international supervision is a hazard to the international investors,which not only brings the investment protectionism,deters the free capital movement and harms the fair trade environment.It is negative for the growth of the Sovereign Wealth Fund. As a result,an international supervision on Sovereign Wealth Fund is very necessary.Based on the discussion of international supervision on Sovereign Wealth Fund,this essay could be summarized into introduction,body and conclusion.And there are four chapters in the body part:Chapter one is the explanation of Sovereign Wealth Fund.It introduces several authoritative definitions and sum up the basic features,and analyses the legal form of Sovereign Wealth Funds. In additon,through the comparison of Sovereign Wealth Fund with relevant concepts like public pension funds and foreign currency reserves,analysis of the concept.Chapter two is the current supervision of the Sovereign Wealth Fund. It analyses the supervision from two angles:the home country and the host country. The drawbacks and merits of each mode are also discussed in this chapter.Chapter three is the analysis and recommendation on the international supervision, some main recent proposals on internatinal supervision cooperation are analyzed,including the OECD Declaration on Sovereign Wealth Funds and Recipient Country Policies and IMF Sovereign Wealth Funds Generally Acceptd Principle and Practices "Santiago Principles".In addition,coments which aim at the arguements proposed by some intellects on incorporating the supervision into the architecture of WTO rules are made at the end of the chapter. Chapter four:offers reference and suggestion to chines legislation,the management and operation of china investment corporation,and chinese participation of international legislation about sovereign wealth funds.