A Study On Legal Regulation Of Privately Offered Fund In China

The object of this paper is the privately offered fund in our country’s financial market. The privately offered fund as an investment vehicle, which has a long development history in foreign countries, has gradually formed a more mature mode of operation. Chinese privately offered fund appeared at the end of the last century, but its strong vitality and fast growth make it the focus of attention of the industry. Due to lack of legal norms and constraints, many problems have arisen during its development. Thus, giving a clear legal status of the privately offered fund to strengthen the norms and regulation has become an urgent need to resolve the problem.According to foreign legislative cases and current Chinese private system, the placements of privately offered fund in our country is divided into three categories: The first is the institutional investors; the second is natural investors; the third is internal employees of privately offered fund issuer. On the basis of the protection of the interests of investors and the maintenance of the order of the securities market, necessary restrictions should be imposed upon the transfer of the share of privately offered fund. Taking into the account of the flexibility and innovation of the privately offered fund, the law should not make mandatory provisions on the investments operation and the investment risk and profit distribution of the privately offered fund.Taking into account the most majority of the privately offered fund invested in the securities market, CSRC should act as the regulatory agency of the private equity fund of our country, at the same time, other government agencies should regulate privately offered funds in their respective spheres. On the basis of the commercial credit system in China has not yet really established, the qualification of privately offered fund managers should adopt the same standards of public offered fund. Taking into the account of the investor of the privately offered fund has the ability of investment judgment and negotiation, the parties of the privately offered fund for private equity fund can decide whether to set up independent supervisor. On the basis of the protection of the interest of the investor and the maintenance of the order of securities market, the privately offered fund managers have the obligation to disclose relevant information to the investors and relevant authorities whether the privately offered funds are in placement or after it.In the writing process, this paper has used the deductive and inductive research methods. Based on relatively mature foreign theory and practical experience, combined with China’s actual situation, the paper analyzes the feasibility and necessity of legal regulation of privately offered funds in China, and proposes the specific legislative proposals of the privately offered funds in China.